Fed holds interest rates steady again in Powell’s last meeting as chair

Federal Reserve Chair Jerome Powell is pictured at the Federal Reserve in Washington

By Bryan Mena, CNN

Washington (CNN) — The Federal Reserve on Wednesday kept interest rates unchanged for a third consecutive meeting, with some policymakers citing 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 is expected to be Jerome Powell’s final meeting as chair before his term ends on May 15.

Powell is set to address reporters at 2:30 p.m. ET to discuss the Fed’s latest decision, and possibly announce whether he plans to remain on the Fed’s board after his term as chair expires. He is serving a concurrent term as a Fed governor that runs through January 2028.

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.”

Their 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. While the Fed chair wields considerable influence, controlling the agenda for every Fed meeting, they have only one vote in a committee that makes consensus-based decisions.

This story is developing and will be updated.

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Fed holds interest rates steady again in Powell’s last meeting as chair

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