Federal Reserve Chair Jerome Powell issued a rare warning that the Fed’s credibility is at risk, suggesting that political pressure is threatening the central bank’s independence. His reference to “stress tests” was interpreted as a response to executive interference in monetary policy. The statement has drawn market attention as it may signal unprecedented external pressure on the Fed’s rate-setting process.
The Federal Reserve kept interest rates unchanged at its April meeting, with growing divisions among policymakers on future direction. Meanwhile, oil prices surged above $120 per barrel due to the Iran conflict, intensifying inflation concerns.
Federal Reserve Chair Jerome Powell announced he will continue to serve as a Fed governor after his chair term expires in May, thwarting President Trump’s plan to appoint a new board member and triggering a new institutional showdown in Washington.
The Federal Reserve kept interest rates unchanged at its April meeting, but four officials voted in dissent, marking the highest level of disagreement in nearly 34 years.