Fed expected to hold rates Wednesday

Federal Reserve officials opened a two-day policy meeting Tuesday, and markets are overwhelmingly betting they will leave interest rates unchanged on Wednesday. (federalreserve.gov) (cmegroup.com) The Federal Open Market Committee is scheduled to announce its decision on Wednesday, April 29, after meeting on April 28-29. The Fed's current target range is 3.50% to 3.75%, and traders have priced a hold as the base case. (federalreserve.gov) (cmegroup.com) That would extend a wait-and-see stretch for the central bank as officials weigh inflation risks against signs of weaker growth and a softer labor market. CBS News reported policymakers are also navigating higher energy prices tied to war. (cbsnews.com) Wednesday's press conference is drawing unusual attention because it may be Jerome Powell's last as Fed chair. The Associated Press reported Tuesday that Powell could use the appearance to clarify whether he will stay until a successor is confirmed. (apnews.com) The April meeting does not come with a new quarterly Summary of Economic Projections, so there will be no fresh "dot plot" of officials' rate forecasts. That puts more weight on the wording of the statement and Powell's answers at 2:30 p.m. Eastern. (federalreserve.gov) (cbsnews.com) For households, a hold would not automatically keep credit card, auto loan, or mortgage rates fixed, but it would mean no immediate policy push toward cheaper borrowing. Mortgage and refinancing costs have stayed elevated even after the Fed cut rates late last year. (cbsnews.com) Economists are still split on what comes next. A Reuters survey cited in market coverage found 71 of 103 economists expected at least one rate cut in 2026, while nearly one-third expected no cuts at all this year. (msn.com) So the likely headline Wednesday is no move on rates. The real signal may come from how Powell describes inflation, growth, and whether he says anything concrete about the chair transition. (apnews.com)