Fed to hold rates at 3.50-3.75% amid Powell's likely exit
The US Federal Reserve is set to keep interest rates unchanged at 3.50-3.75% during this week's meeting, likely the last for Chairman Jerome Powell.
With conflicts in the Middle East driving up energy prices, the Fed is playing it safe (KPMG economist Kenneth Kim notes that higher oil and gas costs are still hitting wallets and businesses).
US inflation 3.3% amid political pressure
US inflation jumped to 3.3% in March, mainly because of those rising energy costs.
Usually, the Fed tries to balance job growth with keeping prices stable, but right now fighting inflation comes first.
Meanwhile, political drama is brewing: President Trump wants lower rates while seeking to oust Fed Governor Lisa Cook over claims of mortgage fraud, and Kevin Warsh's possible move to Fed chair is stuck in Senate debates, making things even trickier for the central bank as it juggles all these pressures.