Fed Meets for First Time Since Powell Signaled Policy Shift

Federal Reserve officials meet Tuesday and Wednesday for the first time since Chairman Jerome Powell said last month that the central bank needed to shift its focus toward preventing higher inflation from becoming entrenched and away from fostering a rapid rebound in hiring from the pandemic.

The pivot raises the prospect that the Fed’s postmeeting statement—a document parsed by markets as a signal of likely future policy—could be overhauled at the conclusion of their meeting Wednesday.

“There are meetings where you make small changes, and there are meetings where you...