The U.S. Federal Reserve left its benchmark federal funds rate range unchanged at 3.50%-3.75% on Wednesday, marking the fourth straight meeting without a change. This was Jerome Powell's last FOMC meeting as chairman; his term ends May 15. Kevin Warsh, the nominee to succeed him, cleared a Senate Banking Committee vote earlier Wednesday, paving the way for his takeover.
The rate decision saw four dissents. Fed Governor Stephen Mirran favored a 25-basis-point cut, a dovish stance, while Beth Hammack, Neel Kashkari, and Lorie Logan preferred holding rates steady without any easing bias — a hawkish posture. The three hawkish dissents suggest Warsh will face a tough battle if he wants to push through rate cuts.
Bitcoin BTC/USD traded at $64,168.87, down about 0.5% over the past 24 hours. U.S. stocks edged lower, with the Nasdaq down 0.35%. Bond yields rose sharply: the two-year Treasury yield climbed 9 basis points to 3.93%, and the 10-year yield gained 5 basis points to 4.40%.
Oil Price Rebound Complicates Fed's Path
WTI crude traded near $105 per barrel, almost at post-war highs, rebounding sharply after a dip earlier this month amid hopes for U.S.-Iran peace. Higher energy costs feed into headline inflation and can slow economic growth, putting the Fed in a bind: which mandate — prices or growth — to prioritize?
Attention now turns to Powell's post-meeting press conference for clues on monetary policy direction. With hawkish dissenters gaining voice, the ease with which Warsh might cut rates looks increasingly uncertain.