Federal Reserve officials are increasingly optimistic they can quash inflation without causing serious economic pain. Encouraged by signs that price pressures and the labor market are gradually cooling, Fed officials are intent on not squandering their chance at an elusive “soft landing” by raising interest rates too much, even as they remain committed to returning inflation to their 2% goal. With that in mind, policymakers are preparing to hold rates steady at their Sept. 19-20 gathering, and may lift them once more if needed this year, amid a spate of strong economic data. The balancing act is critical to the ... (full story)