On a day marked by symbolism and political transition, the U.S. Federal Reserve (FED) announced today, April 29, 2026: Interest rate will be maintained at 3.75% compared to the previous year. This resolution is more than just a financial calendar resolution. This will be the last monetary policy decision under Jerome Powell’s authority.
While the market assimilated rate maintenance (which was already expected, as CriptoNoticias explained this morning), attention shifted to the press room. Powell gave his last public speech on interest rates..
The Fed already has a seemingly clear successor in its sights. next month, If the Legislature approves his appointment, Kevin Warsh will become the organization’s president.. Markets have generally viewed the transition with positive expectations, as Warsh is known to have an affinity for Donald Trump’s economic vision. Close coordination between the growth-first approach and the White House’s fiscal policy is expected.
Despite Wall Street’s enthusiasm for Mr. Warsh’s profile, the mood in the financial world is cautious. The current economic climate poses challenges that go beyond proper nouns. With the rise in crude oil prices, There is potential uncertainty about the direction the Fed will take in the coming months..
As usually happens whenever new interest rate data becomes available, the price of Bitcoin (BTC) reacts with high volatility. The problem is that there is a relationship between the cost of money and financial markets, as explained in Cryptopedia (the education section of CryptoNoticias).
At this time, it was expected that there would be no interest rate reduction, but Bitcoin initially reacted bearishlyas shown in the image below:
Half an hour after learning about the interest rates, Jerome Powell gave his traditional speech. In its first intervention, the official justified the Fed’s decision to maintain a range of interest rates based on the resilience of economic activity, saying: “The U.S. economy is expanding at a steady pace.”
However, Chairman Powell acknowledged that the price outlook remains difficult, saying: “Inflation has increased recently and is rising relative to our long-term target of 2%.”. Faced with this scenario, the Fed governor emphasized that the Federal Open Market Committee (FOMC) is in no hurry to make downward revisions, saying, “We believe the current monetary policy stance is appropriate to foster progress toward our goals of maximum employment and 2% inflation.”
Mr. Powell delved into the causes of the disinflationary stagnation, focusing directly on international conflicts and trade policy. He explained that the cost of living had increased “due to the significant increase in global oil prices due to the Middle East conflict.”
Furthermore, he frankly admitted: The current situation is not ideal “Inflation is moving in the wrong direction,” he said. Powell also linked the persistence of prices in the goods sector to domestic factors, suggesting that the 3.2% base tax rate “primarily reflects the impact of tariffs.”
In connection with his resignation and the appointment of Kevin Warsh, Powell used the opportunity to congratulate his successor on the progress of the Senate confirmation process and wish him “good luck as the process continues.”
However, he made it clear that his role within the organization would not end on May 15, saying: “Even after my term as chairman ends…I intend to continue as governor for a period to be determined.” Despite the unusual move, the official sought to allay any doubts about Mr. Warsh’s possible interference with the new management, confirming that he intends to “keep a low profile as governor” and be a “very constructive participant” while respecting the president’s position.
Updated April 29, 2026: Added Powell’s press conference remarks.
(Tag Translation) Economy
