Powell: the business angle

Powell's news conference after holding rates covered the US-Israel war with Iran, inflation, legal attacks, and the Fed's independence. Powell has emerged this Friday as one of the stories drawing attention in Iraq.

Key facts

• Powell's news conference after holding rates covered the US-Israel war with Iran, inflation, legal attacks, and the Fed's independence.
• The Federal Reserve has held US interest rates steady after what was expected to be Jerome Powell's final meeting as chair.
• 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.
• The only question remaining is whether his confirmation will come in time for the end of Powell's term on 15 May.

What we know

Going deeper, the Federal Reserve has held US interest rates steady after what was expected to be Jerome Powell's final meeting as chair.

On the substance, 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%.

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

More precisely, the only question remaining is whether his confirmation will come in time for the end of Powell's term on 15 May.

It is worth noting that 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.

By the numbers

At this stage, 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.

On a related note, However, Samuel Tombs, chief US economist at Pantheon Macroeconomics, said Wednesday's fresh oil price bounce, spurred by expectations the US will maintain its blockade of Iranian ports for the long haul, could see rate cuts delayed until 2027.

Going deeper, He added the administration's legal attacks on him "are unprecedented in our 113-year history, and there are ongoing threats of additional such actions".

The wider context

On a related note, 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.

Going deeper, 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.

On the substance, Powell to remain as Fed governor until probe 'well and truly over.

Beyond the headlines, US attorney for the District of Columbia Jeanine Pirro said the investigation would be closed, but Powell said he believed she would "not hesitate to restart the investigation".

More precisely, the move will disappoint the US president, who has frequently clashed with Powell.

The bottom line

• The Federal Reserve has held US interest rates steady after what was expected to be Jerome Powell's final meeting as chair.
• 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.
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