What is Jerome Powell's decision on interest rates in his final meeting as Fed chair?

Interest Rate Hold Expected

The Federal Reserve's policy committee is expected to leave its benchmark rate unchanged at Wednesday's meeting. This decision comes as the central bank maintains its cautious approach amid elevated inflation and geopolitical tensions, including a war with Iran that has triggered energy price spikes.

Powell's Legacy and Departure

Jerome Powell's tenure as Fed chair is ending after more than eight years, during which he navigated aggressive rate hikes to combat inflation that peaked at its highest rate in more than four decades. He is widely credited with defending the Federal Reserve's independence against pressure from the Trump administration, including the president's calls for lower rates and attempts to fire Federal Reserve Governor Lisa Cook.

Warsh Succession and Confirmation

Kevin Warsh, Trump's nominee to replace Powell, is set for a Senate Banking Committee vote on April 29, with a full Senate confirmation vote expected to follow. Warsh has argued there is room to cut interest rates due to productivity gains from artificial intelligence, but has pledged to act independently and not take directives from the president. The DOJ's decision to drop its investigation into Powell on Friday removed a key Senate obstacle to Warsh's confirmation.

Powell's Possible Board Continuation

While Powell's term as Fed chair expires next month, he has the option to remain on the Federal Reserve's governing board through 2028. Such a move would be unusual for a departing chair but would allow Powell to maintain his voice in monetary policy decisions and prevent Trump from filling a board vacancy.