Stability on the surface, tension underneath.

Key TakeawaysPowell confirmed this was his last press conference as chair, congratulating Kevin Warsh and wishing the Fed resilienceThe Fed held rates unchanged but recorded four dissenting votes -- the most since October 1992 -- exposing deep internal divisions as Powell exitsPowell expects March PCE inflation at 3.5%, with rising energy prices pushing short-term inflation higher and the economic outlook described as "highly uncertain"Powell confirmed he will remain on the Fed board after May 15 in a "low-profile" manner, saying government actions left him "no choice" but to stayPowell stated clearly: "I will never be a shadow chairman" -- and added that the next meeting may consider shifting away from the current accommodative policy stanceJerome Powell closed out his tenure as Federal Reserve Chairman on April 30 with a press conference that was simultaneously a gracious farewell, a defiant institutional stand, and a window into a central bank more divided than it has been in more than three decades."This is my last press conference as chairman. Congratulations to Warsh," Powell said, offering a brief but pointed acknowledgment of his successor before turning to the substance of a meeting that produced one of the most fractured FOMC votes in modern Fed history.Four Dissents -- The Most Since 1992The Fed held interest rates unchanged as widely expected, but the vote exposed significant internal rifts. Of 12 voting members, four dissented -- the largest dissenting bloc since October 1992. The split was not uniform in direction. Governor Milan voted against holding rates and supported a 25 basis point rate cut. Cleveland Fed President Beth Hamak, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan voted to hold rates but opposed retaining dovish language in the policy statement -- specifically the word "further" in reference to future rate adjustments, which investment banks had widely expected to be removed as a signal of reduced easing bias.The retention of "further" in the statement despite opposition from three hawkish dissenters and one dovish dissenter underscores the difficulty Powell faced in forging consensus in his final meeting as chair.Inflation Rising, Outlook UncertainPowell delivered a sobering economic assessment. He expects the March PCE inflation rate to come in at approximately 3.5%, with little change in the unemployment rate. Inflation expectations have risen recently, he said, with energy prices -- driven by the Iran conflict and the Strait of Hormuz disruption -- pushing short-term inflation higher. "High inflation partly reflects rising energy prices," Powell said, adding that the current policy stance remains appropriate given the circumstances.Consumer spending remains resilient, Powell noted, though labor demand has weakened. He described the economic outlook as "highly uncertain" and said events in the Middle East have materially increased that uncertainty, with risks present on both sides of the Fed's dual mandate.Next Meeting May Signal Policy ShiftIn a notable forward guidance signal, Powell said the number of officials who believe the probability of a rate hike is roughly equal to the probability of a rate cut has increased -- a shift toward neutral that could translate into a formal policy stance change at the next meeting. "Perhaps the next meeting will consider changing the current accommodative stance," Powell said, a statement that markets will interpret as a signal that the dovish bias embedded in current Fed language may not survive into the next chair's tenure.Powell on Staying: 'No Choice'The most personal and politically charged portion of the press conference centered on Powell's decision to remain on the Fed board after stepping down as chair on May 15. Powell welcomed the Justice Department's announcement that it would not reopen its investigation into him unless the Inspector General makes a criminal referral, but made clear it was insufficient to prompt his departure."I stand by my position and will not leave until the Department of Justice investigation is fully concluded," Powell said. "I will remain on the board after May 15. I will continue to serve as a Federal Reserve Governor, for a period to be determined, in a low-profile manner."Powell was direct about his disagreement with the Trump administration. "It is extremely important that the Federal Reserve not get involved in politics. I had long planned to retire, but recent government actions have left me with no choice but to stay," he said, adding: "I do not agree with the administration's actions."When asked whether his continued presence on the board was politically motivated, Powell rejected the framing. "I do not believe so," he said, framing his decision as an institutional obligation rather than a political act.'I Will Never Be a Shadow Chairman'Powell moved preemptively to address concerns that a former chair remaining as a sitting governor could create a parallel power center at the Fed. "I will never be a shadow chairman," he said explicitly, adding that he respects the role of the Fed chairman and intends to operate strictly as a board member -- not as an alternative voice on monetary policy.The combination of a gracious farewell to Warsh, a record dissent count, a hawkish inflation outlook, and a defiant commitment to stay on the board makes Powell's final press conference one of the most consequential -- and unusual -- in the Fed's modern history.