Today's Wall Street Journal has a front-page story on the Federal Reserve. The nation's central bank, writes Greg Ip, may be close to ending rate cuts for now. This is the first sign that U.S. officials are worried about the plunging dollar and may be willing to do something about it. Fed officials have Ip's ear, and when he writes about what they're "likely" to do, it's almost as good as hearing Bernanke say it himself.

The Fed is also worried about rising inflation and wants to signal the bond markets that it hasn't fallen asleep on the job. On the other hand, it has a deteriorating economy to deal with. Lower short-term interest rates, which are a big factor behind the dollar's swoon, are the Fed's main weapon against a recession. Bernanke is trying to thread the needle. This also suggests he believes the worst of the Wall Street credit meltdown may be behind us.

By Greg Ip Word Count: 1,058 WASHINGTON -- The Federal Reserve is likely to cut its short-term interest rate by a quarter of a percentage point next week -- but then may be ready for a breather.

The Fed, meeting Tuesday and Wednesday, is likely to make what would be its seventh cut in eight months. The reason: Some officials see a case for more insurance against a deeper recession.

But others are concerned a cut could contribute to inflationary pressure with little benefit for growth. That means the option of standing pat will likely also be on the table.