##FedHoldsRateButDividesDeepen
⚖️ Fed Holds Rate, But Divisions Deepen
The Fed held rates at 3.50–3.75% on April 29 — likely Powell's final meeting as chair. But the vote revealed the deepest internal split in decades. Four officials dissented: Governor Miran wanted a cut, while three regional presidents objected to the statement's dovish forward guidance, specifically the implication that cuts would resume.
Powell announced he'll stay on as a Fed governor after his chairmanship ends May 15, citing ongoing legal threats from the Trump administration. Trump has vowed to fire him if he doesn't resign entirely — setting up another clash.
Markets are pricing no rate changes through 2026 and into 2027. Meanwhile, the Iran war's inflationary impact (oil above $100) and a weakening services sector (ISM non-manufacturing fell to 54 from 56.1) are pulling the Fed in opposite directions.
The irony: The Fed held rates because it can't agree on whether inflation or recession is the bigger threat. That uncertainty itself is a risk.
📊 Fed rate: 3.50–3.75% | 4 dissents | 30Y mortgage: 6.46%
#FOMC #RateDecision @Gate_Square
⚖️ Fed Holds Rate, But Divisions Deepen
The Fed held rates at 3.50–3.75% on April 29 — likely Powell's final meeting as chair. But the vote revealed the deepest internal split in decades. Four officials dissented: Governor Miran wanted a cut, while three regional presidents objected to the statement's dovish forward guidance, specifically the implication that cuts would resume.
Powell announced he'll stay on as a Fed governor after his chairmanship ends May 15, citing ongoing legal threats from the Trump administration. Trump has vowed to fire him if he doesn't resign entirely — setting up another clash.
Markets are pricing no rate changes through 2026 and into 2027. Meanwhile, the Iran war's inflationary impact (oil above $100) and a weakening services sector (ISM non-manufacturing fell to 54 from 56.1) are pulling the Fed in opposite directions.
The irony: The Fed held rates because it can't agree on whether inflation or recession is the bigger threat. That uncertainty itself is a risk.
📊 Fed rate: 3.50–3.75% | 4 dissents | 30Y mortgage: 6.46%
#FOMC #RateDecision @Gate_Square
