The Fed held rates steady at 3.5%–3.75% (unchanged since December), citing elevated inflation driven by rising global energy prices and uncertainty from the Iran conflict.
The FOMC voted 8-4 — the most dissents since 1992 — with 3 members opposing the dovish tone and 1 pushing for an immediate cut.
Markets are pricing in no changes for the rest of 2026 and into 2027. This was also likely Powell's last meeting as Fed Chair, with Kevin Warsh set to take over in mid-May.