Key takeaways from Powell’s last meeting as Fed chair
Washington — The Federal Reserve on Wednesday kept interest rates unchanged for a third consecutive meeting, with some key policymakers signaling concern over still-elevated energy prices due to the US-Israeli war with Iran.
Fed officials kept the benchmark lending rate in a range of 3.5-3.75%, in what was Jerome Powell’s final meeting as chair before his term ends on May 15.
In his post-meeting news conference, Powell confirmed he will step aside as chair but remain on the US central bank’s powerful board for now. He is serving a concurrent term as a Fed governor that runs through January 2028. Powell also underscored the persistent uncertainties around the Iran war and the growing division within the Fed’s 12-person rate-setting committee.
Kevin Warsh, President Donald Trump’s nominee to succeed Powell, is widely expected to favor additional rate cuts this year, and he cleared a key hurdle in his confirmation process earlier Wednesday, putting him firmly on track to assume one of the most powerful positions in the global economy. His nomination is expected to advance to the broader Senate chamber for a final vote.
But, while Warsh may favor lower rates, there currently isn’t a convincing economic argument for easier monetary policy anytime soon — a view that three key Fed voters telegraphed at this meeting.
The decision to hold steady was nearly unanimous, with only Fed Governor Stephen Miran casting a dissenting vote in favor of lower rates than the majority wants for the sixth consecutive meeting.
But Fed presidents Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas “did not support inclusion of an easing bias in the statement at this time.”
Powell on the differing views within the Fed
The latest batch of dissents underscore how difficult it will be for Warsh, if he’s confirmed, to persuade the majority of the Fed’s 12-person rate-setting committee to go along with lower rates.
It is the first time since October 1992 that there have been four dissents of any kind.
Source: CNN
https://www.cnn.com/2026/04/29/economy/fed-decision-powell-warsh
Washington — The Federal Reserve on Wednesday kept interest rates unchanged for a third consecutive meeting, with some key policymakers signaling concern over still-elevated energy prices due to the US-Israeli war with Iran.
Fed officials kept the benchmark lending rate in a range of 3.5-3.75%, in what was Jerome Powell’s final meeting as chair before his term ends on May 15.
In his post-meeting news conference, Powell confirmed he will step aside as chair but remain on the US central bank’s powerful board for now. He is serving a concurrent term as a Fed governor that runs through January 2028. Powell also underscored the persistent uncertainties around the Iran war and the growing division within the Fed’s 12-person rate-setting committee.
Kevin Warsh, President Donald Trump’s nominee to succeed Powell, is widely expected to favor additional rate cuts this year, and he cleared a key hurdle in his confirmation process earlier Wednesday, putting him firmly on track to assume one of the most powerful positions in the global economy. His nomination is expected to advance to the broader Senate chamber for a final vote.
But, while Warsh may favor lower rates, there currently isn’t a convincing economic argument for easier monetary policy anytime soon — a view that three key Fed voters telegraphed at this meeting.
The decision to hold steady was nearly unanimous, with only Fed Governor Stephen Miran casting a dissenting vote in favor of lower rates than the majority wants for the sixth consecutive meeting.
But Fed presidents Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas “did not support inclusion of an easing bias in the statement at this time.”
Powell on the differing views within the Fed
The latest batch of dissents underscore how difficult it will be for Warsh, if he’s confirmed, to persuade the majority of the Fed’s 12-person rate-setting committee to go along with lower rates.
It is the first time since October 1992 that there have been four dissents of any kind.
Source: CNN
https://www.cnn.com/2026/04/29/economy/fed-decision-powell-warsh
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