Overview
- The Federal Open Market Committee, which held the key rate at 3.50% to 3.75% on Wednesday, logged four dissents as three presidents opposed language hinting at cuts and one governor sought an immediate cut.
- Officials pointed to the Iran war’s hit to oil and shipping as a fresh inflation risk, and Minneapolis Fed chief Neel Kashkari warned rate increases could be needed if shocks persist.
- In his final press conference as chair, Jerome Powell said he will stay on the Fed’s Board after May 15, keeping a vote through January 2028 in a move that could temper a rapid policy shift.
- The Senate Banking Committee advanced Kevin Warsh’s nomination 13–11, and a full Senate vote expected in mid‑May would set up a rare handoff with Powell still voting on policy.
- Traders pulled back bets on 2026 rate cuts after the meeting, reflecting concern that higher energy costs and open disagreement inside the Fed could keep borrowing costs unchanged longer.