{"id":35248,"date":"2026-05-01T04:38:17","date_gmt":"2026-05-01T11:38:17","guid":{"rendered":"https:\/\/essential.construction\/news\/fed-holds-main-rate-steady-notes-risks-to-jobs-inflation-from-iran-war\/"},"modified":"2026-05-01T04:38:17","modified_gmt":"2026-05-01T11:38:17","slug":"fed-holds-main-rate-steady-notes-risks-to-jobs-inflation-from-iran-war","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/fed-holds-main-rate-steady-notes-risks-to-jobs-inflation-from-iran-war\/","title":{"rendered":"Fed holds main rate steady, notes risks to jobs, inflation from Iran war"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?313321260226\" alt=\"-\"><br \/>\n        Listen to the article<\/p>\n<p>            <span class=\"text-to-speech__button__audio-length\">4 min<\/span><\/p>\n<p>    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/818893\/2026-04-30_10.39.39\/fed-holds-main-rate-steady-notes-risks-jobs-inflation-iran-war-powell.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><span><span><span><span><span><span>The Federal Reserve, in a decision with four dissents, held the main interest rate steady on Wednesday, noting risks to inflation and jobs as the Iran war spilled into a third month.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Fed Chair Jerome Powell, echoing a statement by <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/files\/monetary20260429a1.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>the Federal Open Market Committee<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, described economic growth as \u201csolid\u201d and flagged uncertainty from the war as Brent crude oil futures climbed to the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/tradingeconomics.com\/commodity\/brent-crude-oil\" target=\"_blank\"><span><span><span><span><span><span><span><span>highest level in nearly four years<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. Three dissenting policymakers \u201cdid not support inclusion of an easing bias in the statement at this time,\u201d according to <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>the FOMC. <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span>Governor Stephen Miran also dissented, favoring a quarter-point trim to the federal funds rate.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201cThe economic outlook remains highly uncertain, and the conflict in the Middle East has added to this uncertainty in the near term,\u201d Powell said in a press conference after a two-day FOMC meeting. \u201cHigher energy prices will push up overall inflation \u2014<\/span><\/span><\/span><\/span><\/span><\/span>\u00a0<span><span><span><span><span><span>beyond that the scope and duration of potential effects on the economy remain unclear,\u201d he said. Policymakers \u201cwill continue to monitor the risks to both sides of our dual mandate.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span><span>Powell said after the end of his term as Federal Reserve chair on May 15 he will remain on the board as a governor to help ensure the Fed is free of political interference from the Trump administration.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>\u201cThe institution is being battered,\u201d Powell said, adding \u201cwe&#8217;re having to resort to the courts\u201d in order to ensure monetary policy is conducted without political interference.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>\u201cWe\u2019ve been successful so far, but that\u2019s not over \u2014 none of that is concluded yet,\u201d he said.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>The Justice Department last week suspended a criminal investigation of how Powell handled building renovations of the Fed after a court blocked subpoenas related to the probe.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>Prior to the investigation President Donald Trump for months publicly criticized Powell, saying the Fed chair should cut the benchmark rate to as low as 1%.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span><span>\u201cI will not leave the board until this investigation is well and truly over with transparency and finality,\u201d Powell said. \u201cI plan to keep a low profile as a governor,\u201d he said, adding that he will determine at a later date when he will step down. His term on the board ends in 2028.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Policymakers in their statement retained a bias toward easing even as the consensus is moving toward a neutral stance that gives equal weight to curbing inflation and averting higher unemployment, Powell said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe center is moving toward a more neutral place,\u201d Powell said, referring to the FOMC consensus. \u201cThat&#8217;s sort of what markets are saying too.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOf course, we will move to a hiking bias if we want to hike, and move to a new neutral bias before that,\u201d he said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The war-induced surge in energy prices threatens to increase inflation, slow economic growth and push up unemployment, complicating Fed efforts to meet a congressional mandate to maintain stable prices and full employment.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Unsure whether to combat inflation or unemployment, policymakers have chosen this year to hold the federal funds rate at a range between 3.5% and 3.75%.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>If central bankers trim borrowing costs to bolster the job market, they may also spur inflation, which has exceeded the Fed\u2019s 2% target for five years and edged up in recent months.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Energy prices have soared since the U.S. and Israel launched attacks on Iran on Feb. 28, with <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/tradingeconomics.com\/commodity\/brent-crude-oil\" target=\"_blank\"><span><span><span><span><span><span><span><span>futures for Brent crude oil<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, the global benchmark, rocketing from $73 per barrel to $119 per barrel or 63%.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Regarding the other side of the Fed\u2019s dual mandate, employment edged up just slightly this month after falling in March, creating the grimmest consecutive two-month span for the job market since late 2024, according to S&amp;P Global.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>So far, the economy has taken the oil price shock in stride, Powell said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt&#8217;s been remarkably resilient for some years now,\u201d Powell said, referring to how the economy has weathered supply disruptions from the Russian invasion of Ukraine, the pandemic, the highest tariffs since the 1930s and the Iran war.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe U.S. economy has just powered through shock after shock, and consumers are still spending,\u201d he said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/fed-holds-main-rate-steady-notes-risks-jobs-inflation-iran-war-powell\/818893\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Fed holds main rate steady, notes risks to jobs, inflation from Iran war\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/fed-holds-main-rate-steady-notes-risks-to-jobs-inflation-from-iran-war\/\" aria-label=\"Read more about Fed holds main rate steady, notes risks to jobs, inflation from Iran war\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-35248","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=35248"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35248\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=35248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=35248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=35248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}