Fed set to hold rates at Powell’s last meeting

The Federal Reserve is widely expected to leave its benchmark interest rate unchanged in a range of 3.5% to 3.75% at the Federal Open Market Committee meeting scheduled for April 29, 2026. The gathering is anticipated to be Jerome Powell’s final meeting as chair of the US central bank.

The rate decision and accompanying policy statement will be followed by a press conference with Powell, where he may address the outcome of the meeting and questions about the transition in Fed leadership. Financial markets and observers are focusing on how the Fed balances its inflation mandate with support for economic stability.

The expected decision to hold rates steady comes as price pressures have intensified. The Consumer Price Index rose to 3.3% in March 2026, the highest level in almost two years. This acceleration in inflation has been influenced by rising energy prices.

Higher energy costs have been linked to the ongoing conflict in Iran, which has affected global energy markets. This environment complicates the Fed’s task, as policymakers weigh elevated inflation against the potential impact of tighter financial conditions on growth.

Jerome Powell’s term as chair of the Federal Reserve is set to conclude on May 15, 2026. He is expected to be succeeded by Kevin Warsh, whose confirmation prospects have improved following the recent conclusion of a Department of Justice investigation into Powell.

The anticipated handover marks the end of the Powell era at the central bank and the beginning of a new chapter under Warsh. Market participants are watching for signals on whether the transition could influence the policy stance at future meetings, particularly in the context of persistent inflation pressures.

Following the April 29 announcement, Powell’s press conference is expected to draw significant attention as his last appearance as chair after an FOMC decision. Questions are likely to center on the Fed’s assessment of inflation, the rationale for keeping rates at 3.5% to 3.75%, and how officials view risks from the Iran-related energy shock.

The event will also serve as a pivot point toward the incoming leadership, with observers listening for any comments that may hint at continuity or potential shifts under Warsh once he assumes the role after May 15, 2026.