•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Federal Reserve Chair Jerome Powell held what is expected to be his final press conference before stepping down next month, after the Fed on Wednesday announced it would leave interest rates unchanged amid concerns that inflation could rise further due to the war in Iran.
Policymakers voted to keep the benchmark federal funds rate in its current range of 3.5% to 3.75%. The decision followed the Fed’s choice to hold rates steady in January and March after three consecutive 25-basis-point rate cuts in September, October and December to close out last year.
The Federal Open Market Committee (FOMC) voted 11-1 to maintain rates. Fed Governor Stephen Miran dissented in favor of a 25-basis-point cut. Three other FOMC members—Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari and Dallas Fed President Lorie Logan—also dissented, opposing language that indicated a bias toward easing interest rates.
In total, the four dissents were the highest for an FOMC meeting since 1992.
Powell said policymakers are “squarely focused on achieving our dual mandate goals of maximum employment and stable prices for the benefit of the American people.” He attributed a slowdown in job growth to a “decline in the growth of the labor force due to lower immigration and labor force participation.”
On inflation, Powell said it has risen recently in part due to a “significant rise in global oil prices that has resulted from the conflict in the Middle East.”
The FOMC meeting is expected to be the last under Powell’s leadership, as his term as Fed chair is due to expire on May 15. Powell said this would be his last press conference as chair and congratulated his expected successor, former Fed Governor Kevin Warsh, on his nomination advancing from the Senate Banking Committee earlier on Wednesday.
Powell said he plans to continue serving as a member of the Fed’s Board of Governors after his term ends, citing lingering concerns related to the Trump administration’s legal actions against the Fed.
He referenced the U.S. Attorney for the District of Columbia closing a criminal investigation last Friday, while noting it could be restarted. Powell said the Department of Justice provided assurances that it would not reopen the investigation unless there is a criminal referral from the Fed’s inspector general, and that if the government appeals a recent court decision, it would not seek to restart the investigation or issue new subpoenas as part of the appeal.
Powell said he is encouraged by recent developments but argued that “illegal attacks on the Fed” threaten the institution’s ability to conduct monetary policy without political factors. He said the issue is not verbal criticism by elected officials, adding that he has not suggested such criticism is a problem.
Powell said the legal actions are “unprecedented in our 113-year history,” and that there are ongoing threats of additional actions. He warned that these attacks could “batter the institution” and put at risk “the thing that really matters to the public – which is the ability to conduct monetary policy without considering political factors.”
He also said it is important for the economy and the public to depend over time on a central bank that operates free of political influence.
Powell said he previously planned to retire at the end of his chairmanship, but that he is waiting for the investigation to be “well and truly over with finality and transparency,” and that he will leave when he thinks it is appropriate.
He said he plans to “keep a low profile as a governor,” adding that once Warsh is confirmed and sworn in, he will be chair and that the Fed’s new colleagues will elect him to chair the FOMC as well.
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…
