Federal Reserve holds interest rates steady for third straight meeting

MoneyWatch Federal Reserve holds interest rates steady for third straight meeting .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi Updated on: April 29, 2026 / 2:15 PM EDT / CBS News Add CBS News on Google The Federal Reserve on Wednesday left its benchmark interest rate unchanged, marking the central bank's third consecutive pause in 2026. The decision comes as the U.S. economy grapples with rising inflation due to the Iran war and fitful job growth.The Fed maintained the federal funds rate — what banks charge each other for short-term loans — in its current range of 3.5% to 3.75%. The decision to keep rates steady was widely expected by investors, with the CME FedWatch tool forecasting a 100% probability that officials would maintain the current rate. In explaining its decision to maintain the current rate, the Federal Open Market Committee (FOMC), the Fed's rate-setting panel, cited developments in the Middle East in pointing to "a high level of uncertainty about the economic outlook." The central bank also said "elevated" inflation is tied to the "recent increase in global energy prices."Today's meeting is likely to be Jerome Powell's last as Fed chair, with his term set to expire on May 15 after eight years in the role. Earlier on Wednesday, the Senate Banking Committee voted to advance the nomination of Kevin Warsh, President Trump's pick to lead the Fed, bringing him a step closer to succeeding Powell next month.Warsh will inherit a Federal Reserve facing pressures ranging from President Trump's repeated demands for lower interest rates to a...