Federal Reserve did not change interest rates for the third time – fear of inflation remains! This could also be Jerome Powell’s last FOMC meeting

New Delhi. America’s central bank, the Federal Reserve, once again made no change in interest rates. In the April FOMC meeting, the benchmark overnight interest rate was kept unchanged in the range of 3.50 to 3.75 percent. This is the third consecutive time that the Federal Open Market Committee did not make any changes in the rates. Earlier, the same decision was taken in the meetings of January and March. Concern about inflation is the biggest reason for not changing the interest rates. In December 2025, the Fed had cut the rates for the third consecutive time and had reduced the overnight lending rate by 0.25 percent. Before that, there was a cut of 0.25-0.25 percent in September and October also. But the situation has changed since then. Due to the ongoing tension in West Asia, crude oil prices have increased due to which there is a danger of inflation increasing. In view of this, the Fed decided to keep the rates stable. This could be Powell’s last meeting as Fed Chairman. This meeting could also be historic in many ways because Jerome Powell’s tenure as Fed Chairman is officially ending in May 2026. However, Powell has said that he will remain in the post of governor as long as legal threats remain on the Federal Reserve. His tenure as governor is till January 2028. His intention is to protect the independence of the Federal Reserve from the pressure of the Trump administration. Kevin Warsh will be Powell’s successor. Kevin Warsh has been nominated as Powell’s successor. His nomination was approved by the Senate Banking Committee on Wednesday and could also be confirmed by the full Senate in the next two weeks. Powell himself has said that he will maintain a low profile as governor and will not play the role of an opponent to Warsh.