Powell's Last Fed Meeting: Hawkish Tone Amid Inflation Risks

0:00It's April 27, I'm Cory with the story, this is US News Today, driven by AI and built for America. Jerome Powell's time as Fed Chair is wrapping up around May 15, paving the way for Kevin Worsh to step in. A big hurdle cleared Friday when the Justice Department dropped its probe into renovations at the Fed's headquarters. That satisfied a key senator blocking Worsh's Senate confirmation, and Powell himself wanted the investigation gone before leaving his leadership, Rome. This week, Powell oversees the Federal Open Market Committee's meeting on Wednesday. They'll likely keep the benchmark interest rate steady between 3.50 and 3.75 percent, where it's set since, December. But eyes are on any hints of our rate hikes if inflation picks up speed. The US Iran War, kicking off February 28, almost time, keeps complicating things. Federal prices are stuck high above pre-war levels around $70 a barrel, with ships blocked in the Strait of Hormuz.

1:00That's fueling worries over embedded inflation, hitting everything from gas to supply chains, while the job market shows signs of softening. Fed officials like Christopher Waller and Alberto Mussolam are tempering calls for cuts. They're stressing how prolonged high energy costs could unanker inflation expectations, making hikes a real option. Iran market see rates holding through mid-2027 at least. Powell's 2pm Eastern press conference after the statement drops could clarify his board future. He might stay as governor until January 20th. 28. And spell out the policy debate. Expect a hawkish vibe as they balance these risks.