Four key takeaways from Jerome Powell's final rate decision as Fed chair

Against that backdrop, the Fed decided it was best to keep interest rates steady as it waits for clarity on how long the conflict will last – and how bad the fallout becomes.Hopes of any imminent rate cuts were dashed when it was revealed March's inflation figure had shot up to 3.3%, the highest it has been since May 2024, but the Federal Reserve's statement suggested it would cut rates when it next meets.However, Samuel Tombs, chief US economist at Pantheon Macroeconomics, said Wednesday's fresh oil price bounce, spurred by expectations the US will maintain its blockade of Iranian ports for the long haul, could see rate cuts delayed until 2027.Central banks tend to raise rates when inflation is high to discourage people from spending and encourage them to save, something they hope will bring the rate of price rises down. They then tend to cut interest rates when the economy is weak to encourage spending and investing to boost job creation and economic growth.Powell to remain as Fed governor until probe 'well and truly over'Though this is expected to be Powell's last meeting as chair, his term as a Fed governor does not expire until 2028. He said he will stay on at the bank until a Trump administration probe into him and the bank is "well and truly over".US attorney for the District of Columbia Jeanine Pirro said the investigation would be closed, but Powell said he believed she would "not hesitate to restart the investigation".