Gotrade News - The Federal Reserve held its benchmark rate at 3.5-3.75% at the FOMC meeting on Wednesday (29/04). The decision matched expectations but came with the largest dissent since 1992.
Almost in parallel, the US Senate Banking Committee advanced Kevin Warsh's nomination as Fed Governor with a 13-11 vote. Powell will step down from the Chair role on May 15, 2026, smoothing Warsh's path forward.
Key Takeaways
- The Fed kept rates at 3.5-3.75% with four officials dissenting, the widest split since October 1992.
- Stephen Miran wanted a 25-basis-point cut while Hammack, Kashkari and Logan rejected dovish language.
- The Senate is on track to confirm Warsh before May 15, 2026, shaping the next leg of US monetary policy.
The 8-4 vote was described by CNBC Indonesia as the widest dissent in 34 years. Beyond Miran, three regional Fed presidents also voted against the statement, each citing different concerns.
The FOMC noted that inflation remains elevated, partly reflecting global energy price increases, a shift from prior softer language. US inflation reached 3.3% in March 2026, the highest level since May 2024.
The 13-11 Senate Banking vote cleared after Senator Thom Tillis flipped, citing assurances from the Department of Justice. The DOJ agreed to suspend its probe into Fed building renovation cost overruns, removing the main obstacle.
Powell congratulated Warsh on his nomination progress and signaled he will remain on the Board of Governors. He plans to stay until the renovation investigation closes, according to Bloomberg Technoz and CNBC Indonesia.
Senator Elizabeth Warren warned that Trump still seeks full control of the Fed. Democrats also demanded a halt to legal proceedings against Fed Governor Lisa Cook as a condition for further support.
Wall Street closed lower with the Dow down 280.12 points or 0.57%, SPY slipping 0.04%, and QQQ edging up 0.04%. Traders are still digesting the prospect of higher-for-longer monetary policy.
Long-duration assets like TLT face renewed pressure as four FOMC members opposed dovish framing. Financial-sector exposure via XLF tends to benefit from steeper curves if Warsh leans more hawkish than expected.
The combination of a hold and a leadership transition leaves the policy path unusually uncertain. Global investors should watch the Senate floor confirmation timeline and the Fed's June meeting for early signals on direction.
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