HKMA holds base interest rate at 4%, following Fed as war inflation worries persist

Federal Reserve Chair Jerome Powell's final rate decision saw interest rates held steady due to uncertainty surrounding the duration and impact of ongoing geopolitical conflict. Despite a recent surge in March inflation to 3.3%, the Fed's statement indicated potential rate cuts at its next meeting. However, rising oil prices, influenced by expectations of continued US blockades, could delay rate cuts until 2027, according to an economist. Powell will remain a Fed governor until a Trump administration probe is concluded, despite an attorney's statement that the investigation would be closed. This decision reflects the Fed's balancing act between controlling inflation and stimulating economic growth amidst complex global factors.

The US Federal Reserve has decided to maintain its interest rates at 3.5-3.75 percent. This decision, announced on Wednesday following a two-day policy meeting, comes amid concerns about persistent inflation and global economic strain. The Fed cited rising global energy prices, partly influenced by developments in the Middle East, as a significant factor contributing to elevated inflation. While the majority of officials voted to hold rates steady, there were notable dissents, indicating potential divisions within the central bank regarding future monetary policy adjustments. The Fed's statement highlighted the uncertainty surrounding the economic outlook due to these geopolitical events.

The Senate Banking Committee has advanced Kevin Warsh's nomination to be the next chair of the US Federal Reserve. The committee voted 13-11 along party lines, with Republicans supporting the nominee and Democrats opposing him. Warsh, President Trump's choice to succeed Jerome Powell, now moves to the full Senate for confirmation, with a vote potentially occurring as early as May 11. A previous hurdle, Senator Thom Tillis's hold on the nomination pending a criminal investigation into Powell, was removed after the Department of Justice dropped its inquiry, finding no evidence of wrongdoing. Warsh previously served on the Fed Board of Governors from 2006 to 2011.

Federal Reserve Chair Jerome Powell announced on Wednesday that he will remain

Federal Reserve Chair Jerome Powell announced he will remain on the Fed's board after his term as chair concludes next month. Powell stated his decision to stay for an "undetermined period of time" is a response to what he described as "unprecedented" legal attacks on the institution by the Trump administration. He expressed concern that these attacks are damaging the Fed and jeopardizing its ability to serve the public interest. This move prevents President Trump from immediately appointing a replacement to Powell's seat on the seven-member governing board.