Story perspectives

Fed Holds Rates at 3.5-3.75%, Warns Hormuz, Warsh Cleared

4/28/2026

Summary

Fed Holds Rates

The Federal Reserve will keep its benchmark rate at 3.50%-3.75% on April 28-29, with Chair Jerome Powell announcing the decision at 2 p.m. ET.
Federal Reserve Governor Christopher Waller warned that disruptions in the Strait of Hormuz could embed higher inflation.
The Justice Department ended its probe of Powell’s Federal Reserve headquarters renovation, clearing Kevin Warsh for confirmation after May 15.

Summary

Powell Exits Fed

Fed Chair Jerome Powell's tenure ends May 15 2026, with former Treasury official Kevin Warsh as the successor.
Inflation rose from ~1 % in late 2020 to 9.1 % in June 2022, fell to ~2 % then spiked in March 2026, while PCE rose from 1.6 % in Feb 2018 to 3 % in Feb 2026, above Fed’s 2 %.
Unemployment hit 14.8 % in Apr 2020, with labor-force participation falling to lowest since the 1970s in Mar 2026 and hiring favoring healthcare as Big Tech feels fallout.

Summary

Warsh Confirmation

Senate Banking Committee will vote on Kevin Warsh’s confirmation on April 29.
The vote moves Warsh toward a full Senate confirmation.
The Department of Justice closed its Federal Reserve renovation probe, raising legal questions about Governor Lisa Cook’s removal.
White House press secretary Karoline Leavitt said U.S. President Donald Trump will be satisfied once Warsh is confirmed.
David Royal warned Warsh’s confirmation could boost market volatility if Fed Chair Jerome Powell stays after May 15, creating a “two Popes” split.

Summary

Fed Swap Lines

The Federal Reserve (Fed) runs swap lines with six banks to supply dollar liquidity.
Treasury Secretary Scott Bessent told a Senate subcommittee swap talks are routine.
UAE ambassador Yousef Al Otaiba said the UAE holds $2 trillion in assets, $300 billion in reserves and $1.5 trillion in deposits, rejecting dollar-liquidity claims.
Kevin Warsh, President Donald Trump's Fed chair nominee, faced a hearing that warned of changes and a less communicative but independent stance.

History

Historical Context

In August 1979 President Carter appointed Paul Volcker as Fed chairman; he raised the federal funds rate to a June 1981 peak of about 20%, ending the 14.8% inflation spike of March 1980 and ushering a recession that pushed unemployment above 10%. Today the Senate Banking Committee’s vote on Kevin Warsh recalls Volcker’s decisive policy response.

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Fed Holds Rates

The Federal Reserve will keep its benchmark rate at 3.50%-3.75% on April 28-29, with Chair Jerome Powell announcing the decision at 2 p.m. ET.
Federal Reserve Governor Christopher Waller warned that disruptions in the Strait of Hormuz could embed higher inflation.
The Justice Department ended its probe of Powell’s Federal Reserve headquarters renovation, clearing Kevin Warsh for confirmation after May 15.

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