Story perspectives

Fed Keeps Rates; Powell’s Last Meeting Flags 3.3% Inflation

4/29/2026

Summary

Fed Holds Rates

The Federal Reserve (Fed) kept its rate in the 3.50%–3.75% range on April 29, 2026.
Fed Chair Jerome Powell gave oral remarks at his final meeting before his term ends May 15, 2026.
U.S. inflation was 3.3% year-over-year, above the 2% target, after energy prices rose 10.9% in March amid the Iran conflict.
President Donald Trump's nominee Kevin Warsh awaits Senate confirmation to replace Powell, while Fed funds futures indicate price stability through 2027.

Summary

DOJ Closes Probe

The Justice Department closed its probe of Fed Chair Jerome Powell, prompting Sen. Thom Tillis to lift his block and back President Donald Trump’s nominee Kevin Warsh.
Jerome Powell signaled he may remain on Federal Reserve Board after his chairmanship ends May 15, a “two-Popes”.
Fed Governor Christopher Waller warned inflation could keep rates steady while Sen. Thom Tillis said the DOJ appeal will target principle, not revive the investigation.

History

Historical Context

Facing double-digit inflation that hit 13.5 % in 1980, Paul Volcker raised the federal funds rate from 11.5 % to a peak of about 20 % by June 1981, triggering the 1980-82 recession but ultimately restoring price stability. In 2026, Jerome Powell’s Fed kept rates at 3.50-3.75 % as inflation eased to 3.3 %, while political pressure mounted from President Donald Trump’s nominee Kevin Warsh.

1 of 3

Fed Holds Rates

The Federal Reserve (Fed) kept its rate in the 3.50%–3.75% range on April 29, 2026.
Fed Chair Jerome Powell gave oral remarks at his final meeting before his term ends May 15, 2026.
U.S. inflation was 3.3% year-over-year, above the 2% target, after energy prices rose 10.9% in March amid the Iran conflict.
President Donald Trump's nominee Kevin Warsh awaits Senate confirmation to replace Powell, while Fed funds futures indicate price stability through 2027.

1 / 3