The Federal Reserve is expected to keep interest rates unchanged; attention is focused on the uncertainty surrounding Powell's departure.

Golden Finance reports that on April 29, uncertainty about the economic outlook and changes in the central bank leadership cast a shadow over this week’s Federal Reserve meeting. It is expected that the institution’s officials will keep interest rates unchanged on Wednesday. The Iran war has caused energy prices to surge and supply chain bottlenecks, increasing the likelihood of inflation heating up and economic growth slowing, prompting policymakers to send signals that, for the time being, they are inclined to take a wait-and-see stance.

The Federal Open Market Committee (FOMC) is expected to keep the target range for the federal funds rate unchanged at 3.5%-3.75% for the third consecutive meeting.

At what is likely to be Jerome Powell’s final press conference as Chair of the Federal Reserve, investors will look for clues to judge how long the Fed plans to maintain this patient posture. However, even more attention may be focused on Powell’s remarks about his future at the Federal Reserve. Powell has hinted that after his term expires on May 15, he may continue to serve as a member of the Federal Reserve Board.

Officials will issue statements after the press conference in Washington at 2 p.m. local time on Wednesday, and Powell’s press conference will be held 30 minutes later. Federal Reserve watchers expect that this policy statement will not differ significantly from March, but it may include a few tweaks. For example, officials may adjust their description of the labor market to reflect recent data showing that although hiring numbers are on the low side, the labor market has been stabilizing.

(Dongxin News Agency)