Fed officials express concerns over potential recession and banking crisis.

The Federal Reserve staff is anticipating a "mild recession" later this year as their baseline forecast, followed by two years of recovery. Fed policymakers raised interest rates at that meeting anyway, and look likely to do so again in early May. The combination of persistent inflation and troubles in the banking sector is making it look like a more remote possibility than was the case a couple of months ago. The official calculus is that inflation is coming down too slowly, and with too many false dawns along the way.