The U.S. Federal Reserve is widely expected to hold interest rates at current levels at the conclusion of its latest policy meeting on April 29.
Economists broadly agree that rising crude oil prices and renewed inflation pressures have left the U.S. central bank little room to cut rates.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading above $100 U.S. a barrel, up more than 40% since America attacked Iran on Feb. 28.
The benchmark Federal Funds Rate currently sits at 3.50% to 3.75%, and futures markets don’t see it changing before December of this year, or possibly in early 2026, at the earliest.
Inflation in the U.S. has been above the Fed’s 2% annualized target for five consecutive years and shows signs of rising along with energy prices.
Still, the latest interest rate decision from the Fed is notable in that it will be the last with Jerome Powell as chair of the central bank.
Powell’s second term as Fed chair ends in May, when U.S. President Donald Trump’s hand-picked successor Kevin Warsh is expected to takeover.
At his final news conference, Powell is likely to be asked about his contentious relationship with Trump, who publicly criticized the central bank chair for not lowering interest rates faster.
Trump went so far as to launch a criminal investigation into Powell over renovations being undertaken at the Federal Reserve’s headquarters. That investigation was dropped last week.
