Particle.news
Download on the App Store
13 ARTICLES
·
1h ago

Powell Backs Hold on Rates as Fed Watches Oil Shock and Private Credit Strain

The central bank is holding steady to gauge whether the oil shock will feed lasting inflation.

Federal Reserve Chair Jerome Powell gestures while addressing students at Harvard University, Monday, March 30, 2026, in Cambridge, Mass. (AP Photo/Charles Krupa)
Image
Image
Federal Reserve Chair Jerome Powell, seated at right, gestures while addressing students with economics professor David Laibson at Harvard University, Monday, March 30, 2026, in Cambridge, Mass. (AP Photo/Charles Krupa)

Overview

  • Speaking at Harvard on Monday, Jerome Powell said policy is in a good place to wait and see, with the Fed funds rate held at 3.50% to 3.75%.
  • Powell said longer‑term inflation expectations look well anchored even after oil topped $100 a barrel and gasoline prices jumped.
  • He described the $3 trillion private credit market as undergoing a correction with withdrawals and rising defaults but said he sees no links to the banking system that point to contagion.
  • Federal Reserve Governor Stephen Miran reiterated his dissent, arguing rates could be about one percentage point lower over a year if inflation expectations stay stable.
  • Leadership remains uncertain as Powell’s term ends in mid‑May and Kevin Warsh’s nomination is stalled in the Senate Banking Committee during a probe led by U.S. Attorney Jeanine Pirro.