Jerome Powell Delivers Likely Last Speech, Rates Unchanged
The Federal Reserve held rates steady at 3.5% to 3.75% for a third straight meeting.The 8-4 vote marked the highest number of Fed dissents since October 1992.Rising oil prices tied to the Iran war kept inflation risks high and delayed cut hopes. The US Federal Reserve left interest rates unchanged at 3.5% to 3.75% after its April policy meeting, matching market expectations. This was the third straight meeting with no change in rates. Meanwhile, the markets had fully priced in a hold before the decision. The Federal Open Market Committee voted 8-4 to keep rates steady, the highest number of dissenting votes since October 1992. One official, Stephen Miran, backed a 25 basis point cut. Beth Hammack, Neel Kashkari, and Lorie Logan supported holding rates but opposed language that still pointed to possible future easing. Inflation and Oil Prices Keep Pressure on the Fed The Fed said inflation remains elevated, partly due to rising global energy prices. The pressure increased after the Iran war pushed oil sharply higher. Brent crude jumped more than 6% to settle at $118.03 per barrel. After the settlement, it briefly touched $120.27, the highest level since 2022. WTI crude rose nearly 7% to $106.88 per barrel, its first close above $100