Fed Faces Tough Balancing Act on Rates With Inflation Still High

Very few expect the Fed to cut interest rates Wednesday; investors will parse Powell's comments for signals on potential future rate cuts
Current expectations are for 3 rate cuts by year-end, bringing the rate to 4.6%, but high inflation could push cuts further out
Inflation has not fallen as quickly as expected; consumer prices rose 3.2% annually in February, with some items much higher
While consumer inflation is down from its 9.1% peak, it remains above the Fed's 2% target
The Fed faces a tough balancing act between combatting inflation and supporting the economy with rate cuts