After steering the U.S. central bank through an unprecedented series of challenges from the pandemic, Federal Reserve Chair Jerome Powell and the Federal Open Market Committee face another critical test: controlling the highest inflation in decades without tipping the economy into a recession. Last week, the Fed announced the biggest interest hike in 22 years and plans for reducing the Fed’s nearly $9 trillion balance sheet. “What we can control is demand, we can’t really affect supply with our policies,” Powell told Marketplace host Kai Ryssdal in an interview Thursday. “And supply is a big part of the story here. ... (full story)