Fed Holds Rates as Powell's Chairmanship Nears End
Fed keeps rates at 3.5%-3.75% as Powell's chair term ends May 15 and investigators hand a probe to the Fed inspector general, clearing the path for Kevin Warsh.
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Raw StoryFederal Reserve delivers Trump one last defeat before top foe's exit: report
CNBCHere's everything to expect when the Fed issues its latest interest rate decision Wednesday
Fox BusinessFed expected to hold rates as Powell era nears end with Warsh on deck
Overview
The Federal Reserve held its benchmark federal funds rate at 3.5% to 3.75%.
The decision comes as Jerome Powell's term as Fed chair is due to expire on May 15, and economists pointed to sticky inflation—about 3% on the Fed's preferred gauge—and rising energy costs as reasons to pause.
U.S. Attorney Jeanine Pirro announced her office ended a probe into Powell's renovation testimony and transferred it to the Fed's inspector general, Michael Horowitz, a move that helped clear a path for Kevin Warsh's confirmation.
Markets priced a 100% probability of no rate change, gasoline averaged about $4.18 per gallon, crude oil hovered near $100 a barrel, and Powell remains a Fed governor through Jan. 31, 2028.
Attention now turns to whether Kevin Warsh will be confirmed to succeed Powell and whether Powell will remain on the Fed Board after his chairmanship ends, with the FOMC's next scheduled session in mid-June.
Analysis
Center-leaning sources present largely neutral coverage, balancing factual detail and competing viewpoints: they attribute colorful metaphors to analysts, quote Powell, Tillis and the White House, and provide economic data without loaded language, emphasizing procedural developments (confirmation vote, inspector general probe) rather than editorial judgment.