Federal Reserve Holds Rates 8-4 in Powell's Final Meeting; Senate Banking Advances Kevin Warsh as Next Fed Chair

The Federal Reserve's Federal Open Market Committee voted 8-4 on April 30, 2026 to hold the benchmark federal funds rate steady at 3.5%–3.75% — the third consecutive meeting without a change. The decision came at Jerome Powell's final FOMC meeting as Fed chairman; he is set to step down in mid-May 2026 under political pressure from the Trump administration, which repeatedly demanded rate cuts and called Powell 'weak' and 'stupid.' Four dissenting governors voted for an immediate 25-basis-point cut, citing slowing labor demand and Iran war-induced deflationary risks from a potential recession. In his final press conference, Powell said the Fed remained 'data dependent' but flagged that 'uncertainty around the economic outlook has elevated materially' due to the oil supply shock. President Trump immediately posted on Truth Social demanding an 'interest rate reset' and calling the hold 'a disaster for American families.' Separately, the Senate Banking Committee advanced Trump's nominee Kevin Warsh — a former Fed governor and investment banker — to the full Senate in a party-line 13-12 vote. Warsh has signaled openness to rate cuts and closer coordination with the White House on economic policy, a posture that alarmed Democratic senators and some market economists. Mortgage rates moved above 7% the following day in response to the Fed's hold.