After two years of smooth sailing, Fed ready to navigate rocky bond market, Trump uncertainty

After two years of progress on inflation and surprisingly persistent economic growth, the Federal Reserve next week meets with one eye on new Trump administration policies and another on a bond market that has ratcheted up borrowing costs even as U.S. central bankers have been cutting interest rates.

Both pose potential challenges in an economy where inflation has edged slowly closer to the Fed’s 2 per cent target without the