On April 29, the Federal Reserve kept its key rate in the 3.5–3.75% annual range, marking a third straight meeting without any change. The vote closed at 8:4, making it the most divided committee decision since October 1992. The central bank offered no signal on when rates might move next.
Split Inside the FOMC
The four dissenters split in sharply opposing directions. Stephen Miran backed an immediate 0.25 percentage point rate cut. At the same time, three regional Fed presidents — Beth Hammack, Neel Kashkari, and Lorie Logan — opposed including language in the statement that could open the door to future policy easing.
This meeting marked Jerome Powell’s last as Chair of the Federal Reserve. During his tenure, rates fell to zero in March 2020, climbed to a 20-year peak of 5.25–5.5% in July 2023, and finished his term at 3.5–3.75%.
Inflation and the Middle East
In its statement, the Fed adjusted its inflation language: instead of somewhat elevated, it now described inflation simply as elevated. The central bank also specifically flagged rising global energy prices and called the situation in the Middle East a source of high uncertainty for the economic outlook.
At his press conference, Powell acknowledged that debate inside the committee over the future path of policy had intensified. He also said the Fed’s messaging could shift as soon as the next meeting. At the same time, he described the scale and duration of the Iranian conflict’s economic impact as extremely difficult to predict.
Trump to Powell
While the committee was voting, Donald Trump posted on his social platform Truth Social, calling Powell "Jerome “Too Late” Powell" and saying he was clinging to the Fed chairmanship because he would not be able to find a job anywhere else.
“No one wants him,” Trump wrote.
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