Jerome Powell speech today: When will Fed chair make his last address? Latest FOMC meeting update
Federal Reserve Chair Jerome Powell is set to make an address Wednesday at 2:30 PM ET following what could be one of the most closely watched Federal Open Market Committee meetings of his tenure, and potentially his final one as Fed chair before his term expires on May 15.
The Fed reconvened at 9 AM local time Wednesday for the second day of its policy meeting, with officials widely expected to leave benchmark interest rates unchanged for a third consecutive session, likely maintaining the federal funds rate in the 3.50% to 3.75% range.
Why this FOMC meeting matters more than usual
This meeting comes at a uniquely volatile moment for the US economy. The Fed is balancing stubborn inflation, softening job growth, and fresh uncertainty caused by rising energy prices and supply chain disruption linked to the US-Israel-Iran conflict. Analysts say surging oil costs could complicate the Fedâs dual mandate of controlling inflation while preserving employment.
âWe’ll look for any indication that Fed officials’ assessment of the risks to their outlook has changed since the mid-March meeting,â economist Nancy Vanden Houten of Oxford Economics said, as per AFP.
EY-Parthenon chief economist Gregory Daco said the Fed may also âacknowledge that rate hikes could be appropriate if inflation remains above-target.â
Powellâs final stretch as chair – what happens next?
Powellâs current term as Fed chair is scheduled to end May 15, intensifying scrutiny around both his own plans and President Donald Trumpâs push to reshape the central bank.
Trump nominee Kevin Warsh moved one step closer to succeeding Powell after the Senate Banking Committee voted 13-11 Wednesday morning to advance his nomination.
Democrats fiercely opposed the move.
Sen. Elizabeth Warren argued Warshâs nomination would advance Trumpâs âattempt to seize control of the Fed.â
Georgia Sen. Raphael Warnock warned it had been âtainted by the real and persistent threatsâ Trump made toward Fed governors.
âThe independence of the Fed is foundational to our system,â he said.
Trump-Powell tensions remain central
Powell has repeatedly faced political pressure from Trump, who has criticized him for not cutting rates faster. The president has argued lower rates would accelerate economic growth, while Powell and many economists remain wary of reigniting inflation.
Trumpâs Justice Department had also launched a probe into Powell and Fed renovation cost overruns, a move that the current chair described as part of a broader pressure campaign against Fed independence. That investigation was dropped Friday, clearing a key obstacle for Warshâs nomination and easing Republican resistance.
Could Powell stay on after May 15?
Although Powellâs chairmanship may soon end, his term as a Fed governor runs through 2028, leaving open the unusual possibility that he remains on the board even after stepping down as chair.
Daco said such a move âwould help preserve institutional continuity, anchor the existing communication approach, and provide a stabilizing counterweight during the transition.â
What markets will watch during Powellâs speech
Beyond the expected hold on rates, traders will parse Powellâs remarks for signals on:
Whether inflation from higher oil prices may delay future cuts
The Fedâs view on recession risks tied to war-related supply shocks
Powellâs own future role after May 15
Whether policymakers are considering hikes again if inflation worsens
Where to watch Jerome Powell live today
Powellâs press conference is scheduled for 2:30 PM ET and can be viewed live via the Federal Reserveâs official channels, including its website and YouTube livestream.
(With AFP inputs)