Interest rates expected to hold steady at Fed meeting likely to be Powell's last as chair

EconomyInterest rates expected to hold steady at Fed meeting likely to be Powell's last as chairThe Federal Reserve is also grappling with the economic impact of a global energy shock triggered by the U.S.-Israel war with Iran.Listen to this article with a free account00:0000:00Federal Reserve Chair Jerome Powell speaks at the Federal Reserve on March 18.Anna Moneymaker / Getty ImagesShareAdd NBC News to GoogleApril 29, 2026, 5:00 AM EDTBy Steve KopackThe Federal Reserve is expected to keep interest rates steady Wednesday, at what is likely to be Chair Jerome Powell’s last policy meeting as the leader of the world’s most influential central bank.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.Last week, a clear path opened up for President Donald Trump’s nominee to replace Powell, Kevin Warsh, to be confirmed by the Senate, when the Justice Department said it would close a criminal investigation into Powell and the central bank.The Senate Banking Committee is expected to vote Wednesday morning to advance Warsh's nomination to the full chamber for final confirmation. Powell could still remain at the Fed after May 15, when his tenure as Fed chair ends. So far, he has not given any indication of whether he will or not. As a result, Wednesday’s meeting and press conference will be overshadowed by questions about Powell’s next steps.Federal Reserve leaders serve simultaneously as chair and as a governor on the Fed’s board. And while Powell's term as chair ends next month, his term as a governor does not expire until January 2028.Either way, “the presumed transition to Warsh’s leadership makes Wednesday’s meeting less important for markets,” said Citigroup's chief U.S. economist Andrew Hollenhorst on Monday. “There will be no update to economic projections and policy rates are widely expected to remain unchanged.”While the meeting might be less consequential for investors than some past Fed meetings, there is still...