The US Federal Reserve has kept its benchmark interest rate unchanged for a third consecutive meeting, holding the range at 3.50% to 3.75%. Policymakers are grappling with heightened uncertainty linked to the war in the Middle East and rising inflation, now at 3.3%.
Chair Jerome Powell signaled he plans to remain on the central bank's board beyond his term ending May 15. He cited concerns over what he described as "unprecedented" legal attacks by the Trump administration on the institution.
"I worry these attacks are battering this institution and putting at risk the things that really matter to the public," Powell said, adding he would wait for the conclusion of an investigation into the Fed's building renovations before stepping down fully.
The decision exposed sharp divisions within the Fed, with the most dissents since October 1992. Three officials opposed language signaling possible future rate cuts; a fourth, Stephen Miran, called for an immediate reduction.
President Trump's nominee to succeed Powell as chair, Kevin Warsh, has already been approved by the Senate Banking Committee. Warsh had promised sweeping changes, including to the Fed's economic models and communications strategy. However, with inflation running above the Fed's 2% target, analysts question how easily such cuts could be implemented.