Powell was called on to save the economy. His next challenge will be even tougher.

It’s a lightning-fast turnabout from just a few months ago when the central bank was still buying $120 billion in U.S. government debt every month to supercharge its efforts to keep borrowing costs low during the pandemic.For Powell, the way forward is charged with peril: If he slams on the brakes too fast, the economy could falter and even slip into recession, dashing hopes for the Fed's goal of “maximum employment.” Moving too slowly to rein in price spikes risks the danger of even higher inflation. By VICTORIA GUIDAThe White House isn’t throwing up political barriers to the Fed’s intentions to do more to combat inflation, at least for now.“I want to be clear: I’m confident the Federal Reserve will act to achieve their dual goals of full employment and stable prices and make sure the price increases do not become entrenched over a long term, with the independence that they need,” Biden said Friday.Among the uncertainties facing central bank policymakers: the surprising persistence of the virus and its variants; lingering supply chain disruptions that have driven up the prices of goods; and an upheaval in the labor force that has resulted in millions of Americans quitting work, creating a tight job market that can lead to more inflation.The Fed has penciled in three rate hikes this year, and the first could come as soon as March.