US Fed Meeting: A Divided FOMC Keeps Rates Unchanged For 5th Time; Is This Powell's Last Policy?

The US Federal Reserve has kept key interest rates unchanged for the fifth consecutive policy in a row at 3.5% to 3.75%. However, in the April 29th meeting, the FOMC committee's split in opinion reached an 8-4 vote, the highest level of dissent since 1992. Many had also anticipated that this would be Jerome Powell's last policy.

US Federal Reserve Rates:

In its policy statement, FOMC said, "Recent indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, on average, and the unemployment rate has been little changed in recent months."

Also, it added, "Inflation is elevated, in part reflecting the recent increase in global energy prices."

FOMC's policy decisions are with an objective of achieving maximum employment and inflation rate of 2% for the longer run. However, the ongoing West Asia war has brought more uncertainty to the global environment, especially to inflation.

"Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook. The Committee is attentive to the risks to both sides of its dual mandate," said FOMC.

Accordingly, to ensure its objectives are achieved, Fed has decided to hold rates at 3.25% and 3.75%. It needs to be noted that Fed has kept its rates unchanged since the December 2025 policy.

US FOMC Voting Dissent:

What was surprising to see is the split of opinion between FOMC members. Those who voted in favour of holding rates steady were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Philip N. Jefferson; Anna Paulson; and Christopher J. Waller.

On the other hand, Stephen I. Miran voted to lower the target range of the federal fund rate by 25 basis points. And then Beth M. Hammack, Neel Kashkari, and Lorie K. Logan were among those who supported keeping rates unchanged byt dud not support inclusion of an easing bias in the statement.

This was a split of 8-4 in FOMC policy decision. The last time four members dissented in FOMC policy was seen in October 1992.

Check Recent Dissent In FOMC Meetings:

Date	Decision	Dissent Count	Dissenting Members	Preference
Apr 29, 2026	Hold rates (3.25-3.75%)	4	Stephen Miran; Lorie Logan; Neel Kashkari; Beth Hammack	Miran: cut; others: hawkish dissent
Mar 18, 2026	Hold rates	1	Stephen Miran	Cut rates
Jan 28, 2026	Hold rates	2	Stephen Miran; Christopher Waller	Cut rates
Dec 10, 2025	Hold rates	3	Stephen Miran; Austan Goolsbee; Jeffrey Schmid	Mixed
Oct 29, 2025	Hold rates	2	Stephen Miran; Jeffrey Schmid	Mixed
Sep 17, 2025	Cut rates	1	Stephen Miran	Bigger cut
Jul 30, 2025	Hold rates	2	Michelle Bowman; Christopher Waller	Cut rates
Mar 19, 2025	Hold rates	1	Christopher Waller	Policy stance dissent

Is This Jerome Powell's Last Policy?

Many had expected that April 2026 will be last policy of Fed chair Jerome Powell whose chairmanship concludes on May 15. However, during a press briefing yesterday, Powell said, "I had long planned to be retiring," adding, "The things that have happened really in the last three months have, I think, left me no choice but to stay until I see them through at least that long."

Powell stated that he continue to be on the Fed board and act as the central bank governor. His statement comes a day after US President Donald Trump's handpicked successor for Powell, Kevin Warsh's nomination as Fed chair advanced from the Senate Banking Committee Wednesday morning.

In the conference, Powell said the Fed's independence is at risk amidst the legal assaults. He added, "The institution is being battered over these things."

Trump has been against Powell since he took the reins of White House for the second time. The US President demands lowering of interest rates, which FOMC has not done for the past five policies. In July, Trump spoke against Powell, saying, "He's a terrible Fed chair," adding, "I was surprised he was appointed. I was surprised, frankly, that Biden put him in and extended him."

US Stock Market:

Following the Fed policy, US market witnessed a mixed trend. The Dow Jones Industrial Average fell by 0.6% to 48,861.81, while S&P 500 mildly slipped by 0.04% to close at 7,135.95, however, Nasdaq gained mildly by 0.04% finish at 24,673.24.

These movements followed the Federal Reserve's decision to leave policy unchanged as anticipated, though four officials dissented, signaling increasing divisions over the policy outlook amid heightened uncertainty tied to the Iran war, as per Trading Economics.