The US Federal Reserve has decided to keep key lending rates steady in the 3.5% and 3.75% range amid war-triggered elevated inflation. Notably, this is the third consecutive time that the rates have been held.
Fed chair Jerome Powell addressed a press conference shortly after the decision came out, during which he flagged "misbehaving inflation", Donald Trump's tariff impact on prices of goods, resilience of the US economy, and his decision to remain on the Fed board as a governor.
Here are the key highlights from Powell's Fed address:
Last Briefing... But With A Twist
Powell confirmed that it was his last press conference as the Fed chair, stating that Kevin Warsh will take his place as when appointed.
However, he clarified that he plans to go back to being governor and leave when it is the "appropriate time".
"I will leave the Fed when it's appropriate to do so. The recent events have left me no choice but to stay," he told reporters, referring to the graft probe into the Fed building renovation case, in which his name was earlier dragged.
Even as the Department of Justice dropped criminal inquiry against him last week, Powell said he stands by his view that he would remain on the Fed board till the case is completely addressed.
ALSO READ: Jerome Powell To Exit As Fed Chair But Retain Board Seat — 'Will Leave When Appropriate'
Most Dissent Since 1992
The Federal Open Market Committee (FOMC) 2026 saw four members dissent against the decision to hold rates. This is the highest number since October 1992, which also included four dissenters to the committee's decision to hold rate.
Commenting on the same, Powell said, "If everybody agreed, that would be surprising."
'Would Never Be Shadow Chair'
Addressing concerns regarding his decision to stay back, Powell said that he does not intend to be a high profile dissident and wants to keep a low profile as governor.
On being asked whether he would overshadow the incoming chair Kevin Warsh, Powell said that he "would never do that."
Fed Independence At Risk
Powell's decision to stay on as Federal governor has "legal assaults" on the central bank at its core. Clarifying on the same, he said that he is fearful of Fed's independence being at risk with "elected politicians" resorting to legal assaults on the institution.
He added that while verbal assaults did not bother him, politicians resorting to legal measures can batter the central bank.
Fed Stance 'Mildly Restrictive'
The outgoing Fed chair referred to the rate-setting panel's decision stance as "mildly restrictive" or on the "high-end" of neutral, adding that the meeting had more people wanting to change the language instead of holding rates steady.
Rates were held taking into account elevated inflation caused by the Iran war and Hormuz disruption—the timeframe for which cannot be determined.
Powell said that inflation will tick higher and "misbehave more" on rising energy prices, which will hurt will the disposable income of households.
Despite the concerns, the Fed's policy rate is in "a good place", Powell said. "If we need to hike, we will signal that and do it; if we think a cut is appropriate, we will signal the opposite."
ALSO READ: Gold Price Plunges 1.5% As Fed Keeps Rates Steady, Cites War-Triggered Inflation
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