US interest rates unchanged at Fed meeting, likely Powell's last as chair

Dubai: The US Federal Reserve kept interest rates unchanged for a third straight meeting on Wednesday, likely the last one with chairman Jerome Powell at its helm.

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The Fed, which earlier penciled in one rate cut in 2026, cut rates three consecutive times last year before holding them steady at its January meeting.

In the second day of their policy gathering, Fed officials would be assessing the risks of surging energy prices and snarled supply chains due to the US-Israeli war on Iran.

Analysts were expecting another pause in adjustments on Wednesday, keeping interest rates between 3.50 percent and 3.75 percent, as effects of the conflict ripple through the world's largest economy.

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With Powell's tenure as Fed chairman ending May 15, pressure is also mounting for lawmakers to confirm Trump's choice of his successor, Kevin Warsh.

The US Senate Banking Committee voted 13-11 to advance Warsh's nomination on Wednesday morning, bringing him a step closer to confirmation by the full Senate.