•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Federal Reserve Chair Jerome Powell said he will remain on the central bank’s rate-setting board after his term as chair ends in May, following the Fed’s decision to keep interest rates unchanged for the third time this year despite calls from Donald Trump for rate cuts.
Powell said he had planned to step down from the board once the White House’s investigations into renovations at the Fed were “well and truly over with transparency and finality.” His term as chair ends on May 15, and his term as a Fed governor runs until January 2028. He said he was encouraged by the Justice Department’s decision to drop its investigation, but cautioned that additional steps remain.
“My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve,” Powell said, adding that the Fed must not be pulled into politics. He also said the events of the last three months left him with no choice but to stay until those matters are resolved for at least that long.
On Wednesday, Fed officials cited elevated inflation, slow job growth, and uncertainty in the Middle East as reasons for keeping rates unchanged. The board said inflation remained elevated, partly reflecting higher global energy prices.
Only one of twelve voting members voted against leaving rates unchanged. Three supported maintaining the current rate but did not agree with later rate cuts.
Brent crude oil briefly hit $119 a barrel, reflecting ongoing uncertainty around the Iran conflict.
The Fed’s meeting came after the Senate confirmed former Fed governor Kevin Warsh as the new chair. Warsh would still need broad support to deliver rate cuts, and with only one vote he cannot move policy alone.
Warsh is seen as more amenable to Trump’s calls for a rate cut, but the Fed’s voting structure means any policy shift would require agreement across the board.
Economists generally view central bank independence as important for maintaining a stable economy. Higher rates have helped reduce inflation from a 9.1% peak with minimal labor market impact, though White House policies have also influenced economic conditions, including tariffs and energy prices amid the Iran conflict.
Fed officials have taken a wait-and-see approach after cutting rates from 5.25%-5.5% in 2023 to 3.5%-3.75%. Trump has pushed for deeper rate cuts, arguing for additional stimulus even at the risk of higher prices.
The Justice Department dropped its investigation into Powell last week, but other investigations into the renovations remain active. Powell said the Fed’s independence remains at risk amid legal scrutiny, emphasizing the need to defend monetary policy from political influence.
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…
