Federal Reserve and Interest Rates

Jerome Powell said he intends to remain “chairman pro tempore” after his May 15 term expires and to stay on the Fed Board until a DOJ criminal probe is resolved, as Kevin Warsh’s nomination is stalled by Sen. Thom Tillis and a federal judge recently quashed two DOJ subpoenas targeting the Fed. At the March meeting the Fed held the funds rate at 3.5–3.75%, raised inflation forecasts and—facing an Iran‑war energy shock and softer job growth—produced projections showing more officials now expect no rate cuts in 2026, a shift that rattled markets as oil and yields rose and stocks fell.