Federal Reserve holds interest rates steady for third straight meeting

The Federal Reserve on Wednesday left its benchmark interest rate unchanged, marking the central bank's third consecutive pause in 2026. The decision comes as the U.S. economy grapples with rising inflation due to the Iran war and fitful job growth . The Fed maintained the federal funds rate — what banks charge each other for short-term loans — in its current range of 3.5% to 3.75%. The decision to keep rates steady was widely expected by investors, with the CME FedWatch tool forecasting a 100% probability that officials would maintain the current rate. Today's meeting is likely to be Jerome Powell's last as Fed chair, with his term set to expire on May 15 after eight years in the role. Earlier on Wednesday, the Senate Banking Committee voted to advance the nomination of Kevin Warsh, President Trump's pick to lead the Fed, bringing him a step closer to succeeding Powell next month. Warsh will inherit a Federal Reserve facing pressures ranging from President Trump's repeated demands for lower interest rates to an inflation reading that jumped last month to its highest level in almost two years . Because interest rate cuts can spur inflation, many economists now predict the Fed will hold off on reductions until later in 2026 or even 2027. …