Fed Holds Rates Steady as Powell Ends Term as Chair
The Federal Reserve kept rates steady as Jerome Powell concluded his term as chair. Officials cited rising inflation risks while four members issued dissents.
Federal Reserve Chair Jerome Powell kept interest rates at 3.50%-3.75% on Wednesday afternoon, concluding his eight-year leadership of the United States central bank. The decision featured four dissents, marking the most divided policy vote for the institution since 1992. Investors face a shift toward higher-for-longer rates as inflation pressures mount and political friction threatens central bank independence.
Powell announced he will remain on the Board of Governors until January 2028 to defend the agency from political pressure. He described recent legal actions by the administration as unprecedented in the institution's 113-year history.
