Fed's Divided: Powell's Exit, Warsh's Arrival, Rate Cuts

0:00The Federal Reserve just held its benchmark interest rate steady at 3.6% for the third meeting in a row, but they kept language. Hinting at a possible cut down the line, this sparked the most dissents from officials since 1992, with four voting against the statement, one pushing for an immediate drop, and three wanting no future cut talk at all. That split highlights Steve Division's on the 12-member committee, especially as Chair Jerome Powell's term wraps up on May 15th. The Senate Banking Committee greenlit his replacement, Kevin Worsh, a Trump pick, who's all about rate cuts and shaking up the Fed's whole approach. From models to messaging, these tensions could heat up between the Trump team and regional bank presidents who dissented here and have classed before. Worsh faces pushback too, promising big changes, but hitting inflation over 3%, way above the 2% goal. The economies of mess right now, inflation hit 3.3%, a two-year high from spiking gas prices, while hiring stalled even as, unemployment dipped to 4.3% in March, layoffs stay low,

1:05so some officials say no rush to cut rates. Powell holds his last press conference this afternoon, where he might reveal plans to stick around on the board through January 20th, 28th. Blocking Trump from another pick and risking a messy power split that amps up the policy fights. That's the story for today, Canada News Today, driven by AI, I'm Corey with the story.