{"id":61417,"date":"2026-04-29T14:38:17","date_gmt":"2026-04-29T18:38:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-holds-rates-steady-amid-geopolitical-tensions-trump-and-putin-discuss-ukraine-ceasefire\/61417\/"},"modified":"2026-04-29T14:38:17","modified_gmt":"2026-04-29T18:38:17","slug":"fed-holds-rates-steady-amid-geopolitical-tensions-trump-and-putin-discuss-ukraine-ceasefire","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-holds-rates-steady-amid-geopolitical-tensions-trump-and-putin-discuss-ukraine-ceasefire\/61417\/","title":{"rendered":"Fed Holds Rates Steady Amid Geopolitical Tensions; Trump and Putin Discuss Ukraine Ceasefire"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The Federal Reserve maintained the benchmark interest rate at 3.50\u20133.75%<\/strong>, but the decision saw an 8\u20134 split\u2014the highest number of dissenting votes since 1992.<\/li>\n<li><strong>President Trump and Vladimir Putin held a 90-minute phone call<\/strong> discussing a potential ceasefire in Ukraine to coincide with May&#39;s Victory Day and stabilizing the situation in Iran.<\/li>\n<li><strong>Equity markets declined following the FOMC statement<\/strong>, with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> falling 0.40%<\/strong> and the <strong>Nasdaq dropping 0.48%<\/strong> as the Fed labeled inflation &quot;elevated.&quot;<\/li>\n<li><strong>PayPal (<a href=\"\/stock\/PYPL\">PYPL<\/a>) announced it is spinning off Venmo<\/strong> into a standalone business unit amid interest from potential buyers.<\/li>\n<li><strong>OPEC+ is expected to increase oil production quotas<\/strong> by 206,000 barrels per day (bpd) following the UAE\u2019s departure from the organization.<\/li>\n<\/ul>\n<h2>Fed Maintains Rates Amid Internal Division<\/h2>\n<p>The <strong>Federal Reserve<\/strong> held its benchmark overnight interest rate steady in the <strong>3.50\u20133.75% range<\/strong> on Wednesday, citing heightened economic uncertainty stemming from developments in the Middle East. In a notable shift in language, the FOMC characterized inflation as <strong>&quot;elevated,&quot;<\/strong> an upgrade from the &quot;somewhat elevated&quot; description used in previous communications.<\/p>\n<p>The policy decision was marked by significant internal disagreement, passing with an <strong>8\u20134 vote<\/strong>. Governor <strong>Stephen Miran<\/strong> dissented in favor of a quarter-point cut, while <strong>Hammack, Kashkari, and Logan<\/strong> opposed the inclusion of an easing bias in the statement. This represents the <em>most divided Fed policy meeting in over three decades<\/em>, signaling deep uncertainty regarding the path of the U.S. economy.<\/p>\n<p>During his press conference, <strong>Fed Chair Jerome Powell<\/strong> noted that while consumer spending remains resilient, energy price volatility is contributing to inflationary pressures. <em>Traders have reacted by boosting bets on a future rate hike<\/em>, with CME FedWatch data now showing a <strong>45% probability of a hike by 2027<\/strong>.<\/p>\n<h2>Trump-Putin Diplomacy and Global Conflict<\/h2>\n<p>President <strong>Donald Trump<\/strong> engaged in a high-stakes, 90-minute phone call with Russian President <strong>Vladimir Putin<\/strong>, covering the conflicts in both Ukraine and Iran. Putin reportedly proposed a <strong>Ukraine ceasefire<\/strong> to coincide with May\u2019s Victory Day celebrations, a move Trump described as positive.<\/p>\n<p>Regarding the Middle East, Trump revealed that the U.S. is currently holding <strong>phone talks with Tehran<\/strong>, suggesting that Iran has &quot;come a long way&quot; in negotiations. Trump also praised the <strong>Hormuz blockade<\/strong> as &quot;brilliant and foolproof&quot; while suggesting that the war in Ukraine might conclude before the conflict with Iran.<\/p>\n<p>In a separate move affecting regional stability, <strong>Delta Air Lines (<a href=\"\/stock\/DAL\">DAL<\/a>)<\/strong> extended its suspension of flights between Atlanta and Tel Aviv through <strong>November 30<\/strong>. The carrier cited ongoing security concerns but plans to resume its JFK\u2013Tel Aviv route in early September.<\/p>\n<h2>Market Reaction and Currency Shifts<\/h2>\n<p>U.S. Treasury yields surged following the Fed&#39;s hawkish undertones, with the <strong>10-year Treasury note yield climbing to 4.398%<\/strong>. The <strong>two-year yield hit 3.914%<\/strong>, its highest level since late March, as investors adjusted to the &quot;higher for longer&quot; narrative.<\/p>\n<p>The <strong>U.S. Dollar Index (DXY)<\/strong> gained ground, last trading up <strong>0.28% at 98.871<\/strong>, while the Euro weakened to <strong>$1.1680<\/strong>. <em>The strengthening greenback reflects a market bracing for persistent inflation and a Fed that is hesitant to pivot toward easing.<\/em><\/p>\n<h2>Corporate and Energy Sector Developments<\/h2>\n<p><strong>PayPal (<a href=\"\/stock\/PYPL\">PYPL<\/a>)<\/strong> is moving to spin off its popular mobile payment service, <strong>Venmo<\/strong>, into a standalone entity. The decision comes as the company&#39;s new CEO seeks to streamline operations while attracting interest from potential corporate suitors.<\/p>\n<p>In the energy markets, President Trump hailed the <strong>UAE\u2019s departure from OPEC<\/strong> as a &quot;positive development&quot; that will likely drive down gasoline prices. <strong>OPEC+<\/strong> is reportedly moving forward with plans to <strong>increase oil production quotas by 206,000 bpd<\/strong> at its upcoming Sunday meeting, despite the UAE no longer participating in the quota system.<\/p>\n<p>Finally, in the tech sector, <strong>OpenAI<\/strong> unveiled a new five-point action plan to strengthen global cyber defense. Meanwhile, reports surfaced that <strong>Starlink<\/strong> saw an <strong>18% drop in revenue per user<\/strong>, even as its total customer base quadrupled, highlighting the challenges of scaling satellite internet infrastructure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Federal Reserve maintained the benchmark interest rate at 3.50\u20133.75%, but the decision saw an 8\u20134 split\u2014the highest 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