US Fed Holds Rates Steady As Senate Weighs Powell Successor

WASHINGTON, April 30 (Bernama-dpa) -- The United States (US) Federal Reserve on Wednesday left its key interest rate unchanged amid the ongoing global supply crisis and inflation concerns linked to the Iran conflict, reported German Press Agency (dpa).

A majority of policymakers voted to keep the benchmark rate in a range of 3.5 per cent to 3.75 per cent, the central bank said in a statement.

The decision comes as attention turns to a successor to Jerome Powell, who has led the Fed for eight years.

Kevin Warsh, the candidate proposed by President Donald Trump, earlier on Wednesday cleared a key Senate Banking Committee vote and now awaits confirmation by the full Senate.

The nomination is being closely watched for its potential implications for the Fed’s policy direction.

Momentum for Warsh's confirmation has improved after a probe into Powell over alleged cost overruns tied to renovations at a Fed building was dropped by the Justice Department last week.

The investigation had prompted some lawmakers, including Republican Senator Thom Tillis, to withhold support for Fed-related appointments until the matter was resolved. 

The inquiry had drawn criticism from across party lines and from senior central bankers, who viewed it as a threat to the independence of the world's most powerful central bank. 

Trump has frequently blasted Powell publicly for not cutting rates fast enough.

But unlike Trump has suggested, the Fed chair does not set interest rates alone – decisions are made collectively by the central bank’s policymaking committee.

The Fed is designed to operate independently of political influence as it promotes its two main tasks as mandated by Congress: maximum employment and price stability.

In 2025, the Fed cut interest rates three times by 25 basis points each, citing concerns about the labour market. It then paused at its first two meetings this year.

-- BERNAMA-dpa