Karla Barker 
The Federal Reserve kept interest rates unchanged on Wednesday, a widely expected move that left traders focusing on Chair Jerome Powell’s possible final press conference as head of the central bank.
The Federal Open Market Committee held the federal funds rate target range at 3.5% to 3.75%. In a statement, the committee said recent data show economic activity continues to expand at a solid pace, though job gains have stayed low on average and unemployment has barely moved in recent months. Inflation remains high, partly due to rising global energy prices.
Bitcoin hovered around $76,000 at press time, roughly flat on the day. Major U.S. stock indexes were slightly lower. The muted market reaction suggests investors had already priced in the rate pause ahead of the announcement.
Geopolitical risks take center stage
The Fed’s statement included a sharper focus on geopolitical risk, noting that developments in the Middle East are creating a high level of uncertainty around the economic outlook. Policymakers said they keep watching risks on both sides of their dual mandate: maximum employment and 2% inflation.
Traders are now waiting for Powell’s remarks, which could offer signals on inflation, unemployment, energy-driven price pressures, and the next steps for policy. His comments carry extra weight because this might be his last FOMC meeting as chair. Markets are also watching how he addresses the leadership transition and his outlook for the Fed after he leaves.
Leadership transition in focus
The Senate Banking Committee voted Wednesday to push forward Kevin Warsh’s nomination to replace Powell as Fed chair. Warsh’s name now heads to a full Senate vote, adding another layer of uncertainty for markets already weighing the rate path, inflation worries, and signs the labor market may be cooling.
The committee vote showed internal splits. Stephen Miran voted against the decision because he wanted a 25 basis point rate cut. Beth Hammack, Neel Kashkari, and Lorie Logan backed keeping rates unchanged, but objected to including an easing bias in the statement.
The Fed said it will keep assessing incoming data, the shifting outlook, and the balance of risks before making any further policy adjustments. The committee repeated its commitment to supporting maximum employment and getting inflation back to 2%.