Federal Reserve Holds Interest Rates Steady in Split 8-4 Vote at Powell's Final Meeting as Chair

Apr 30, 2026

The Federal Reserve held its benchmark interest rate steady at 3.5% to 3.75% for the third time this year in an unusually divided 8-4 vote at Jerome Powell's expected final meeting as chair, with his eight-year tenure expiring next month. Powell announced he will remain as a Federal Open Market Committee governor to defend the institution against legal attacks from the Trump administration, which recently ended a criminal investigation into him and has pressured for rate cuts throughout Trump's second term. The Senate Banking Committee advanced Kevin Warsh's nomination to become the next Fed chair, with the $100 million crypto investor expected to win confirmation in the Republican-controlled Senate. The Federal Reserve cited Middle East conflict and rising energy costs—with gas prices reaching $4.22 per gallon, up 6.2% in a month—as complicating efforts to return inflation to its 2% target.

Federal Reserve's Interest Rate Decision and Powell's Transition

▪Bitcoin fell 1.4% in the 24 hours following the Federal Reserve's interest rate announcement.
▪Fed Governor Stephen Miran called for a 25 basis-point rate cut during the Federal Open Market Committee's latest meeting.
▪Jerome Powell indicated he would serve as chair pro tempore if Kevin Warsh is not confirmed by May 15.
▪The Federal Reserve held its benchmark interest rate steady at a target range of 3.5% to 3.75% on Wednesday.

Middle East Conflict's Impact on Energy Prices and Inflation

▪The national average price for a gallon of gas increased 6.2% over the past month.
▪The average price for a gallon of gas hovered around $2.99 when the U.S.-Israel war with Iran broke out.
▪The national average price for a gallon of gas was $4.22 on Wednesday.
▪Rising U.S. energy costs are potentially complicating the Federal Reserve's efforts to deliver inflation back to its 2% target.