Fed Holds Rates Unchanged: Traders Brace For Powell's Likely Final Presser (UPDATED)

The Federal Reserve held the benchmark federal funds rate at 3.50-3.75% on Wednesday, in what is widely expected to be Chair Jerome Powell‘s final policy decision before passing leadership to Kevin Warsh on May 15.
Governor Stephen Miran again dissented in favor of a quarter-point cut.
The Fed flagged that “inflation is elevated, in part reflecting the recent increase in global energy prices,” marking a hawkish turn from the previous “somewhat elevated.”
The Committee also stressed that “developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.”
Notably, three members — Beth M. Hammack, Neel Kashkari, and Lorie K. Logan — backed holding rates but opposed adding any easing bias to the ...