In what might be Jerome Powell’s last meeting as Federal Reserve chairman, members of the Open Market Committee voted Wednesday to keep their key interest rate steady — although there was plenty of dissent to be found, in fact, the most since the George H.W. Bush era.
Nevertheless, there won’t be any rate cut this time around:
[T]he rate-setting Federal Open Market Committee voted to hold the benchmark funds rate in a range between 3.5%-3.75%. Markets had been pricing in a 100% chance of no change.
The vote was far from unanimous at 8-4, however. One member wanted a quarter percentage point cut, while three objected to a statement that hinted at future changes:
Three Fed presidents—Beth Hammack of Cleveland, Neel Kashkari of Minneapolis, and Lorie Logan of Dallas—backed the rate decision but objected to retaining the “easing bias” that for the last two years has suggested a rate cut is more likely than a rate hike. A fourth official, Fed governor Stephen Miran, dissented in the opposite direction; he backed a rate cut.
It’s not the only big story about the Federal Reserve on Wednesday, as news broke that Trump’s pick to succeed Powell, Kevin Warsh, just passed a crucial test. It puts him on a path to take over the chairmanship after Powell’s term ends on May 15, assuming he passes the vote in the full Senate.
MASSIVE WIN: The Senate Banking Committee has APPROVED President Trump’s Federal Reserve Chairman nominee, Kevin Warsh, in a 13-11 vote, clearing a major hurdle.
— RedWave Press (@RedWavePress) April 29, 2026
He now heads to the U.S. Senate for a final vote, where he is expected to be confirmed. pic.twitter.com/6jSkqPbQ3r
Warsh has served as a White House economic policymaker, former Fed governor, and successful financier.
READ MORE: Tillis Steps Aside and Kevin Warsh Is Now on Track to Lead the Federal Reserve
Trump's Fed Chair Pick Has Fun at Elizabeth Warren's Expense at Confirmation Hearing
If you’re worried that you’ll miss Jerome (although I’m not sure why you would), don’t worry — he’ll still be hanging around. In yet more Reserve news Wednesday, he announced he will continue to serve even after his chairmanship ends.
Federal Reserve Chair Jerome Powell says he'll continue to serve as a governor “for a period of time to be determined” but with a low profile https://t.co/94fPBya8nC pic.twitter.com/y8WYomflM3
— Bloomberg TV (@BloombergTV) April 29, 2026
It’s a bit of a departure from norms:
Powell also said he would remain on the Fed board as a governor at least until the resolution of legal challenges President Trump has mounted against the central bank. While Powell’s term as governor allows him to remain at the Fed until early 2028, it represents an unusual arrangement because for decades, Fed chairs have left the building when their successor is installed.
On Friday, as we reported, the U.S. Attorney for the District of Columbia, Jeanine Pirro, announced the DOJ would drop its probe into Powell (for now, at least) and let the Fed's Inspector General’s office investigate massive cost overruns emanating from the $2.5 billion renovations of the Federal Reserve building.
President Trump has been openly unhappy with Jerome “Too Late” Powell, and won’t be at all sad to see Warsh take over — although he may be piqued that Powell won’t just ride quietly off into the sunset.
He's the guest who won't leave.
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