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Federal Reserve holds rate at 3.5–3.75% as Powell’s chairmanship ends
The Federal Reserve left its interest rate unchanged in the range of 3.5% to 3.75% following its April meeting, a decision that met market expectations and marked a third consecutive pause in tightening. The meeting also signaled a leadership transition. It was Jerome Powell’s final session as chair before the handover of responsibilities to Kevin Warsh in mid‑June.
In his closing remarks, the outgoing chair emphasized the underlying resilience of the US economy. He noted that, despite a local spike in energy prices and heightened geopolitical tensions in the Middle East, consumer activity showed no clear signs of weakening. The Federal Open Market Committee reaffirmed its commitment to achieving the 2% inflation target and pointed to continuing investor confidence in the central bank’s actions amid global uncertainty.
The institutional transition takes place against a backdrop of mounting political pressure. Mr. Powell took the uncommon step of agreeing to remain on the Board of Governors after his term as chair expires in May. Officials said the move was designed to help preserve the Fed’s independence from increasing rhetoric by the administration. He also pledged not to interfere in the work of his successor, a commitment intended to support a stable handover and to reassure financial markets during the transition.
Published 04 May 2026
© InstaFintech Group
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© InstaFintech Group
