📰 Fed Expected to Hold Rates Steady at What May Be Powell’s Final Meeting
April 29, 2026 — The Federal Reserve’s two-day monetary policy meeting enters its second day, with markets broadly expecting the Federal Open Market Committee (FOMC) to keep the federal funds rate unchanged. This could be the final policy meeting for Chair Jerome Powell.
According to Reuters’ analysis titled “Morning Bid: Fed sails into uncharted waters as Powell bows out,” the central bank is navigating unprecedented policy uncertainty. Powell held a press conference on April 28 regarding the interest rate decision, even as an ongoing Inspector General probe into his conduct continues.
SFGATE reports that the Fed is expected to hold rates steady at this meeting, while the confirmation process for potential successor Kevin Warsh is advancing in the Senate. Senator Tillis of North Carolina’s key support recently cleared a major hurdle for Warsh’s nomination, signaling a potential major change in Federal Reserve leadership.
The New York Times, in its “What to Watch at the Federal Reserve’s April Meeting” analysis, notes that the meeting’s focus extends beyond the rate decision to include an assessment of the Powell era’s monetary policy legacy. Over the past few years, the Fed has navigated a full cycle from aggressive rate hikes to rate cut expectations. While inflation has moderated, it remains above the 2% target.
Analysts believe the Fed’s current policy dilemma lies in a challenging balancing act: inflation has not yet fully returned to the target range, while economic growth is showing signs of slowing. Against this backdrop, holding rates steady is viewed as the most prudent course of action.
Markets are also watching closely for updates to the Summary of Economic Projections (SEP) and any changes to the dot plot. If the dot plot reveals divergence among officials regarding the path of rate cuts, it could amplify market volatility. Additionally, if Warsh is ultimately confirmed, his monetary policy philosophy — which tends to favor more aggressive policy adjustments — could have profound implications for the future direction of the Fed’s decision-making.
Source: Reuters | SFGATE | The New York Times