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The Federal Reserve kept its benchmark interest rate unchanged on Wednesday, holding the target range at 3.5% to 3.75% amid heightened uncertainty after what is widely expected to be Jerome Powell’s final Federal Open Market Committee meeting as chair.
In its statement, the Fed said, “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.” The decision marked the third time this year that the committee has paused policy shifts as geopolitical conflict threatens the global economy.
The outcome was widely anticipated. During the FOMC’s latest meeting, Fed Governor Stephen Miran called for a 25 basis-point rate cut. The Fed’s prior interest-rate decision was also split, with Miran advocating for a cut, while three governors supported standing pat.
Those governors did not back language that would signal an easing bias.
Following the announcement, Bitcoin and Ethereum both moved lower, according to CoinGecko. Bitcoin traded around $75,100 and was down 1.4% over the last 24 hours. Ethereum changed hands around $2,240 and fell 2.3% in the same period.
Earlier on Wednesday, the Senate Banking Committee advanced Kevin Warsh’s nomination to succeed Powell. The procedural vote sent the nomination to the full Senate, where Republicans hold a majority.
Powell has indicated he would serve as “chair pro tempore” if Warsh is not confirmed by May 15, aiming to support an orderly transition. Powell has also said he may continue as a Fed governor to maintain institutional stability.
The Justice Department ended its criminal investigation into Powell last week. Sen. Thom Tillis (R-NC) had said he would block a vote on Warsh’s nomination until investigators closed the case, calling the matter “bogus.”
Recent disclosures showed Warsh has a net worth of $100 million and holds investments tied to the crypto sector, including Solana and Polymarket. While Warsh has described many crypto projects as fraudulent and worthless, he has voiced support for Bitcoin.
Traders do not expect looser monetary conditions soon, with rates projected to remain steady through December, according to CME FedWatch.
Lower interest rates typically support risk assets such as stocks and crypto by reducing borrowing costs and increasing liquidity. However, energy prices have risen as ships continue to struggle to transit the Strait of Hormuz, through which 20% of the world’s oil flows, potentially complicating efforts to return inflation to the Fed’s 2% target.
AAA reported that the national average price for a gallon of gas was $4.22 on Wednesday, up 6.2% over the past month. Around the time the U.S.-Israel war with Iran broke out, the average was about $2.99 per gallon.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
