Reading Jerome Powell

The Federal Reserve has held US interest rates steady after what was expected to be Jerome Powell's final meeting as chair. Jerome Powell has emerged this Saturday as one of the stories drawing attention in United Kingdom.

Key facts

• The Federal Reserve has held US interest rates steady after what was expected to be Jerome Powell's final meeting as chair.
• In what may have been Chair Jerome Powell's final meeting at the helm, the rate-setting Federal Open Market Committee voted to hold the benchmark funds rate in a range between 3.5%-3.75%.
• Powell's news conference after holding rates covered the US-Israel war with Iran, inflation, legal attacks, and the Fed's independence.
• Hours after his successor Kevin Warsh won the backing of a key Senate committee to take up the role next month, Powell announced the Fed's rate would stay between 3.5% and 3.75%.
• Though this is expected to be Powell's last meeting as chair, his term as a Fed governor does not expire until 2028.

What we know

Going deeper, In what may have been Chair Jerome Powell's final meeting at the helm, the rate-setting Federal Open Market Committee voted to hold the benchmark funds rate in a range between 3.5%-3.75%.

On the substance, Powell's news conference after holding rates covered the US-Israel war with Iran, inflation, legal attacks, and the Fed's independence.

Beyond the headlines, Hours after his successor Kevin Warsh won the backing of a key Senate committee to take up the role next month, Powell announced the Fed's rate would stay between 3.5% and 3.75%.

More precisely, though this is expected to be Powell's last meeting as chair, his term as a Fed governor does not expire until 2028.

It is worth noting that the only question remaining is whether his confirmation will come in time for the end of Powell's term on 15 May.

By the numbers

At this stage, In a term generally marked by consensus building and few dissents, Chair Powell concludes his term with 4 dissents," Brent Schutte, chief investment officer at Northwestern Mutual, wrote in an email.

On a related note, the full Senate is widely expected to follow suit, setting up the Fed's first leadership change since Powell took over in 2018.

Going deeper, If the matter isn't resolved and Powell's stays on it would mark the first time a sitting chair didn't leave the Board of Governors since Marriner Eccles in 1948.

On the substance, Hopes of any imminent rate cuts were dashed when it was revealed March's inflation figure had shot up to 3.3%, the highest it has been since May 2024, but the Federal Reserve's statement suggested it would cut rates when it next meets.

The wider context

On a related note, the meeting likely was the last with Chair Jerome Powell at the helm.

Going deeper, it followed continued pressure from US President Donald Trump on the Fed to lower interest rates, with the Trump having criticised Powell throughout his presidency.

On the substance, Warsh is expected to face the same pressure from the president, but has vowed to uphold the central bank's independence when he takes over from Powell.

Beyond the headlines, after the bank's latest decision on Wednesday, Powell gave a press conference covering topics from the US-Israel war with Iran to Trump's attacks on the Fed.

More precisely, Powell to remain as Fed governor until probe 'well and truly over.

The bottom line

• Though this is expected to be Powell's last meeting as chair, his term as a Fed governor does not expire until 2028.
• The only question remaining is whether his confirmation will come in time for the end of Powell's term on 15 May.
• The meeting likely was the last with Chair Jerome Powell at the helm.