Powell’s final call: Fed holds rates amid sharp divide
Published on 30/04/2026 12:08 AM
Powell’s final call: Fed holds rates amid sharp divideUS Federal Reserve holds rates steady amid deepest split since 1992, oil prices surge on Iran tensions, markets slip as Kevin Warsh advances toward Fed chair.By Ajay Vaishnav | Megha Rani April 30, 2026, 12:08:33 AM IST (Updated)2 Min ReadThe US Federal Reserve kept interest rates unchanged for the third consecutive meeting in a range of 3.5% to 3.75%, but the decision exposed deep divisions within the central bank. Governor Stephen Miran once again dissented, voting for a 25 basis point rate cut, marking his sixth such disagreement, while three other officials also opposed the stance, though they favoured a clearer signal that future cuts are not guaranteed.
The split is the widest within the Fed since 1992.
The Fed said it will continue taking a cautious, data-driven approach as policymakers weigh inflation risks amid rising energy prices. Inflation concerns have intensified after a sharp rally in oil markets, triggered by reports of escalating tensions around Iran and disruptions to shipping through the Strait of Hormuz.
West Texas Intermediate surged about 7% above $107 per barrel, while Brent crude climbed nearly 7% past $119, its highest in recent weeks.
Markets turned cautious following the Fed decision, with the S&P 500 slipping 0.3% even as oil prices spiked.
Separately, the Senate Banking Committee advanced Kevin Warsh’s nomination as the next Federal Reserve chair in a party-line vote on Wednesday, moving him a step closer to final confirmation in the Republican-controlled Senate. If confirmed, Warsh would succeed Jerome Powell as Fed chair, marking a key leadership transition at the US central bank.Continue ReadingFirst Published: Apr 30, 2026 12:07 AM ISTTagsFed RateFederal ReserveJerome Powell