Fed Pause. This is Jerome Powell’s last such decision
The Federal Reserve decided to keep interest rates unchanged in April.
The federal funds rate in the United States therefore remains in the range 3,5%-3,75%.
Importantly, this was the last monetary decision of the Federal Open Market Committee (FOMC) under the chairmanship of Jerome Powell.
Federal Reserve Chair Powell ended his eight‑year term on Wednesday, remaining a member of the Board of Governors until January 2028.
Powell said that as a Board member he intends to act “discreetly” and will not impede his successor, Kevin Warsh.
The new Fed chief’s nomination was approved on Wednesday by the Senate Banking Committee and could be confirmed just before Powell’s term ends on May 15.
The market expected the U.S. central bank to refrain from both cutting and raising rates amid geopolitical tensions in the Middle East that rattled the energy market.
A key aspect of Powell’s last decision as Fed Chair is his remarks on criticism directed at the Fed by Donald Trump and his administration, which accused the central bank of not cutting rates.
“These legal actions by the administration are unprecedented in our 113‑year history, and threats of further steps are still emerging,” Powell said.
I fear, that these attacks destroy the institution and expose it to risk, which truly matters to society, namely the ability to conduct monetary policy without political considerations.
He also added that he does not oppose the President’s calls for easing monetary policy, but for forms of pressure such as threats and obligations imposed on the central bank to force them through.
“I would like to believe we can return to respecting the rule of law and established customs that allow the Fed to act at its discretion,” he said.
“We are all human. Don’t expect perfection from us. Expect, however, that we will make decisions without political considerations,” he added.
Trump, on the day of the Fed’s last decision led by Powell, again criticized the central bank chief, suggesting he would find no employment outside the institution, having repeatedly threatened him with dismissal earlier.
More on this was written in the article: Rates will not fall? Prosecutor launches major investigation into the central bank
Source: Trading Economics.
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Dollar and euro rates on Thursday, April 30
The dollar to zloty rate on Thursday, April 30 is at 3,65 PLN.
Chart. Dollar to zloty rate (USD/PLN)
Source: TradingView.
The euro to dollar rate reaches 1,16 USD.
Chart. Euro to dollar rate (EUR/USD)
Source: TradingView.
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