The Fed Holds Key Interest Rates Steady Ahead of Jerome Powell's Resignation, Marked by Largest Policy Split Since 1992

WASHINGTON, KOMPAS.com - The United States Federal Reserve, or the Fed, kept its key interest rate steady on Wednesday (29 April 2026) local time. Through the Federal Open Market Committee (FOMC), Fed officials decided to maintain the federal funds rate in the range of 3.5-3.75 per cent. Markets had previously anticipated no changes to the key interest rate. The meeting was anticipated to be the last one chaired by Fed Chair Jerome Powell in his top leadership role. He is scheduled to resign from the top position in mid-May, although his term as a Fed Governor only ends in January 2028. During the meeting, votes were split on keeping the interest rate unchanged. This was because officials were also grappling with the impacts of policy from inflation and awaiting the leadership transition at the central bank. Amid expectations of a routine vote to keep the key interest rate stable, the FOMC instead split 8-4, with officials providing different reasons for their votes. The last time four FOMC members dissented was in October 1992. Governor Stephen Miran, as he has done since joining the central bank in September 2025, expressed dissent and supported a quarter-percentage-point cut. The other three dissenting votes against holding the interest rate came from Cleveland regional president Beth Hammack, Neel Kashkari from Minneapolis, and Lorie Logan from Dallas. They said they agreed with the pause but did not support including an easing bias in the statement at this time. Hammack, Kashkari, and Logan, along with several other Fed officials, have warned about the dangers of persistent inflation. Higher prices signal that the Fed’s interest rates should rise accordingly. Meanwhile, the central bank has been on an easing trend since the end of 2025.