WATCH LIVE: Fed Chair Jerome Powell Speaks After Final FOMC Meeting

Why It Matters

The Fed’s decision to hold rates amid rising inflation and legal scrutiny signals a careful, data‑driven path forward, while Powell’s pledge to remain safeguards continuity as new leadership assumes control.

Key Takeaways

• Fed holds rates at 3.5%-3.75% amid inflation pressures.
• Core PCE inflation at 3.2% driven by tariffs, energy spikes.
• Powell warns legal attacks threaten Fed’s independence and policy making.
• He will remain governor after chair term ends, pending transition.
• Uncertainty from Middle East conflict could keep monetary policy cautious.

Summary

Jerome Powell delivered his final press conference as Fed chair after the March FOMC, announcing that the Committee left the target range for the federal funds rate unchanged at 3.50‑3.75 percent. The decision reflects a judgment that monetary policy is appropriately calibrated to guide the economy toward the dual mandate of maximum employment and 2% inflation.

Powell highlighted that overall economic activity remains solid, with resilient consumer spending and brisk business investment, while housing stays weak. The labor market shows a 4.3% unemployment rate and modest job gains, partly due to a shrinking labor force. Inflation, however, remains elevated: headline PCE rose 3.5% year‑over‑year, core PCE 3.2%, driven by higher oil prices and tariff‑related price pressures.

The chair used the remarks to address the ongoing Department of Justice investigation into the Fed, emphasizing his commitment to see it concluded transparently. He announced he will stay on the Board of Governors after May 15, providing continuity as Kevin Warsh prepares to assume the chairmanship. Powell also warned that unprecedented legal attacks could jeopardize the Fed’s ability to set policy free from political influence.

The unchanged rate and the highlighted inflation risks suggest a cautious stance in the months ahead, especially as Middle‑East tensions keep energy prices volatile. Markets will watch the incoming chair’s communication style and any shift in the “easing bias” language. Powell’s emphasis on institutional independence underscores the broader stakes for monetary policy credibility and economic stability.

Original Description

Federal Reserve Chairman Jerome Powell hold a press conference following the interest rate decision.

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