2026.04.2906:32:09UTC+00Fed to Hold Rates Steady, Chair Powell’s Future Eyed

The Federal Reserve is widely expected to leave the federal funds rate unchanged at its April 2026 meeting, maintaining the 3.5%–3.75% target range for a third consecutive time as policymakers navigate an increasingly complex environment. The outlook for the rest of the year remains uncertain: oil prices continue to climb, and inflation is firming in response to the energy shock, even as labour market and broader economic indicators remain resilient.

Investors will be focused on how policymakers characterise the economic outlook and on any guidance regarding the future policy path—particularly whether a rate increase remains on the table, despite market pricing that currently points to no changes in rates this year. The meeting may also be the last under Fed Chair Jerome Powell. The Justice Department has announced it will halt its criminal investigation into Powell, removing a major obstacle to Senate confirmation of his nominated successor, Kevin Warsh, whose appointment is scheduled for May 15.