Fed Signals It Will Hold Interest Rates Steady in Jerome Powell’s Final Meeting as Chair

WASHINGTON — The Federal Reserve is widely expected to keep its benchmark interest rate unchanged when it concludes its two-day meeting on April 29, 2026 — Jerome Powell’s final FOMC meeting as Chair.

In a statement following the meeting, the Federal Open Market Committee (FOMC) cited persistent inflation above the 2% target and a still-solid labor market as reasons for maintaining the current stance. Powell, speaking at the post-meeting press conference, said the committee continues to see the risks to achieving its dual mandate of maximum employment and price stability as “roughly balanced” but emphasized that further progress on inflation is needed before considering rate cuts.

This was Powell’s final FOMC meeting before his term ends in May 2026. President Donald Trump has nominated Kevin Warsh to succeed him, and the Senate is expected to take up the confirmation soon.

Markets reacted calmly to the decision, with stocks and bonds showing modest moves and the dollar holding steady. Analysts had widely expected no change after the Fed held rates steady at its previous three meetings.

Powell noted that the Fed will continue to reduce its balance sheet at a measured pace but offered no new timeline for future rate adjustments. He acknowledged ongoing uncertainty from global events, including the U.S.-Iran conflict and energy market volatility, but stressed that monetary policy decisions would remain data-dependent.

The decision comes despite President Trump’s repeated calls for lower interest rates to support economic growth. With Powell’s departure imminent, attention now turns to Warsh’s confirmation and the Fed’s direction under new leadership.