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Besides this, Kevin Warsh is headed for a full Senate vote after winning approval from the Senate Banking Committee. The committee backed the nomination along party lines, advancing Donald Trump’s pick to replace Jerome Powell as head of the Federal Reserve.Rising oil prices are a key factor likely to keep the Federal Reserve from resuming interest rate cuts.Crude has surged following disruptions in the Strait of Hormuz amid the U.S.-Iran conflict, raising concerns that lower rates could further fuel inflation.Markets widely expect the Federal Reserve to hold the federal funds rate steady at what could be one of the final meetings led by Jerome Powell.Attention is also on whether Jerome Powell will remain on the board after stepping down as chair, following criticism from Donald Trump over the pace of rate cuts.Sachin Neema, co-founder of Garud Investments, expects the Federal Reserve to keep interest rates steady through mid-2026.He said the central bank may deliver just one reluctant 25-basis-point rate cut later in the year, driven more by political pressures than economic conditions.Neema also flagged rising uncertainty and risk aversion ahead of a leadership transition at the Federal Reserve.

The Senate Banking Committee voted on party lines Wednesday to approve Kevin Warsh as the next chair of the Federal Reserve to replace Jerome Powell, a long-time target of President Trump’s insults for not cutting borrowing costs as far as the president wanted.

The vote was 13-11, with all Republican senators voting in favor and Democrats opposed.

Warsh is a former top Fed official but has also been a sharp critic of the institution and Powell’s leadership. He has called the inflation spike to 9.1% in 2022 the central bank’s biggest policy mistake in four decades. A vote on his nomination probably won’t take place until next month, but he could be confirmed by the time Powell’s term as chair ends May 15.

The Senate Banking vote is the first of two key events surrounding the future of the Fed’s leadership. Also Wednesday, Powell is presiding over what will probably be his last meeting of the Fed’s interest rate-setting committee. At a news conference Wednesday afternoon, Powell may indicate whether he will remain as a member of the central bank’s board of governors after his term as chair ends.

APThe S&P 500 opened Wednesday’s session little changed, trading near the flatline alongside the Dow Jones Industrial Average.The Nasdaq Composite slipped about 0.2% in early trading.

Investors expect the Federal Reserve to keep interest rates unchanged at its Wednesday meeting, as policymakers remain cautious amid persistent inflation and a still-resilient labor market.

The decision, which could be among the final meetings led by Chair Jerome Powell, comes with inflation still above the central bank’s 2% target and limited urgency to begin rate cuts.

Economist Roger Ferguson said the Fed is likely to stay on hold, noting that while the labor market appears stable, inflation — hovering near 3% — still requires more progress before easing policy.

Seagate Technology — Shares surged nearly 18% after strong guidance, with fourth-quarter revenue and earnings outlook topping expectations. The company also beat estimates on both revenue and profit in the third quarter.

Booking Holdings — The stock fell about 4.5% after trimming its full-year earnings growth forecast, citing lingering impacts from the Middle East conflict, despite a first-quarter beat.

Expedia Group — Shares slipped around 3% in sympathy with Booking’s decline.

Mondelez International — The Oreo maker gained 1.5% after reporting better-than-expected first-quarter earnings and revenue.Investor focus is shifting to Big Tech earnings, with four “Magnificent Seven” companies set to report after the bell: Alphabet, Amazon, Meta Platforms, and Microsoft.Analysts at JPMorgan said the results could act as a positive catalyst for markets, though current positioning suggests a rising likelihood of a near-term top and potential consolidation before the broader bull run resumes.The Fed’s decision — and more importantly, its forward guidance — has direct implications for global liquidity and capital flows.For markets like India, the outcome could influence foreign institutional investor (FII) activity, currency movement, and bond yields. A hawkish tilt typically dampens risk appetite and pressures emerging market equities, while a dovish signal tends to support inflows and sentiment.With the announcement coming after Indian market hours, the real impact will likely play out in Thursday’s session. But make no mistake — even a “no-change” decision tonight is unlikely to be a quiet one.This meeting also carries leadership significance. It is increasingly being seen as Powell’s final policy decision as Fed Chair, with his term expected to conclude around mid-May.Reports suggest that the US Senate could move to confirm Kevin Warsh as his successor around the same time, adding another layer of uncertainty to the policy outlook.While the rate decision itself may be a non-event, Powell’s commentary is expected to do the heavy lifting.Investors will closely track the tone of the policy statement and Powell’s remarks for clues on whether the Fed is inching towards a rate cut cycle later this year — or digging in for a prolonged higher-for-longer stance.Some experts believe the central bank could lean hawkish.“Expect the Fed to hold rates steady through mid-2026, with only a reluctant 25 basis point cut later in the year, driven more by political fatigue than economic conviction,” said Sachin Neema, Co-founder of Garud Investments.Nachiketa Sawrikar of Artha Bharat Global Multiplier Fund added that the upcoming decision could mark a shift in tone. “While inflation could justify a more aggressive stance, the Fed has stayed measured so far due to early-stage geopolitical risks. We expect a clearer hawkish signal, indicating rate cuts are unlikely in 2026 under current conditions,” he said.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.