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56m ago

Federal Reserve Holds Rates as Powell Says He Will Stay on the Board

Powell’s decision signals turbulence in the handoff to a new chair.

U.S. Federal Reserve Chair Jerome Powell holds a press conference at the Fed in Washington, D.C., U.S., December 10, 2025. REUTERS/Kevin Lamarque/File Photo
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A view of the vegetables kept on display at the International Green Week agriculture fair in Berlin, Germany January 19, 2024. REUTERS/Annegret Hilse
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Overview

  • The central bank, which voted Wednesday to keep the federal funds rate at 3.50%–3.75%, kept guidance that points to possible cuts if the outlook improves.
  • Four officials dissented, with Governor Stephen Miran seeking an immediate cut and three regional bank presidents rejecting the pro‑cut wording, the most pushback since 1992.
  • The Senate Banking Committee advanced President Donald Trump’s nominee Kevin Warsh by a 13–11 party‑line vote, sending the choice for chair to the full Senate.
  • Powell said he will remain as a Fed governor after May 15 and cited legal attacks and risks to the Fed’s independence, after the Justice Department dropped a probe and sent it to the inspector general.
  • The Fed said inflation is elevated as energy costs rise with the Iran conflict, CPI hit 3.3% in March, and traders scaled back bets on any rate cuts this year after oil jumped.