{"id":61426,"date":"2026-04-29T19:38:29","date_gmt":"2026-04-29T23:38:29","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-holds-rates-amid-oil-volatility-as-political-friction-mounts-over-powells-future\/61426\/"},"modified":"2026-04-29T19:38:29","modified_gmt":"2026-04-29T23:38:29","slug":"fed-holds-rates-amid-oil-volatility-as-political-friction-mounts-over-powells-future","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-holds-rates-amid-oil-volatility-as-political-friction-mounts-over-powells-future\/61426\/","title":{"rendered":"Fed Holds Rates Amid Oil Volatility as Political Friction Mounts Over Powell\u2019s Future"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The Federal Reserve held interest rates steady at 3.5%\u20133.75%<\/strong> on Wednesday, citing elevated inflation risks driven by <strong>Brent crude nearing $120<\/strong> and ongoing Middle East tensions.<\/li>\n<li><strong>Treasury Secretary Scott Bessent<\/strong> publicly criticized Jerome Powell for his decision to remain on the Fed Board after his term as Chair ends in May, labeling the move a <strong>violation of longstanding central bank norms<\/strong>.<\/li>\n<li><strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>)<\/strong> is expanding its US manufacturing footprint with over <strong>$6 billion in total investments<\/strong>, including a newly announced <strong>$830 million<\/strong> for three key propulsion sites.<\/li>\n<li><strong>Woolworths (<a href=\"\/stock\/WOW\">WOW<\/a>)<\/strong> will freeze shelf prices on <strong>300 household staples<\/strong> for three months starting May 1 to provide relief to consumers facing high fuel and interest costs.<\/li>\n<li><strong>Nikkei 225 futures<\/strong> signaled significant market stress, trading at <strong>59,035<\/strong>, nearly 900 points below the cash close of 59,917.<\/li>\n<\/ul>\n<p>The <strong>Federal Reserve<\/strong> maintained its benchmark interest rate in the <strong>3.5%\u20133.75% range<\/strong> today, marking a third consecutive pause as policymakers grapple with a &quot;misbehaving&quot; inflation outlook. Chair <strong>Jerome Powell<\/strong> emphasized that there is &quot;no urgency&quot; to cut rates, specifically pointing to the <strong>US-Iran conflict<\/strong> as a primary driver of supply-side shocks that have pushed gasoline prices to a national average of <strong>$4.23 per gallon<\/strong>. The decision was notably fractured, featuring <strong>four dissenting votes<\/strong>\u2014the highest number of disagreements at a single FOMC meeting since 1992.<\/p>\n<p>Political tensions surrounding the central bank reached a fever pitch as <strong>Treasury Secretary Scott Bessent<\/strong> attacked Powell\u2019s plan to remain a member of the Board of Governors after his chairmanship expires on May 15. Bessent argued that the decision creates a &quot;shadow chair&quot; scenario and is an <strong>&quot;insult&quot; to Republican nominees<\/strong> like Kevin Warsh, who is currently awaiting Senate confirmation to lead the bank. Powell has defended his stay, citing his intention to oversee the conclusion of a Department of Justice inquiry into Fed headquarters renovations.<\/p>\n<p>In the corporate sector, <strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>)<\/strong> continues to bolster its domestic production capabilities, announcing a combined <strong>$830 million investment<\/strong> into its Romulus, Toledo, and Saginaw propulsion operations. These funds are part of a broader <strong>$6 billion US manufacturing push<\/strong> aimed at balancing the production of internal combustion engines with next-generation electric vehicle (EV) platforms. The investment is expected to provide GM with the capacity to assemble over <strong>two million vehicles annually<\/strong> in the United States by 2027.<\/p>\n<p>International markets showed signs of cooling as <strong>UK vehicle production fell 8.2% year-on-year<\/strong> in March, with total output dropping to <strong>72,511 units<\/strong>. The Society of Motor Manufacturers and Traders (SMMT) attributed the decline to part supply challenges and factory retooling for electric models. Meanwhile, in the Asia-Pacific region, <strong>Nikkei futures<\/strong> plunged to <strong>59,035<\/strong>, a sharp discount to the cash close that suggests a bearish opening for Japanese equities as traders weigh global geopolitical risks.<\/p>\n<p>Consumer-facing sectors are also taking defensive measures against inflation. <strong>Woolworths (<a href=\"\/stock\/WOW\">WOW<\/a>)<\/strong> announced it would absorb cost increases from suppliers to freeze prices on <strong>300 essential items<\/strong>, including bread, eggs, and nappies, through August. In the dairy sector, <strong>Fonterra (<a href=\"\/stock\/FSF\">FSF<\/a>)<\/strong> reported a surge in March milk collections, with <strong>New Zealand volumes up 9.6%<\/strong> and <strong>Australian collections up 7.0%<\/strong>, providing a strong supply base even as global demand remains shifted by the Middle East conflict.<\/p>\n<p>Finally, transparency reforms are reaching central banking in the South Pacific. <strong>New Zealand\u2019s Finance Minister<\/strong> announced a new charter for the <strong>Reserve Bank of New Zealand (RBNZ)<\/strong>, mandating that individual members&#39; votes be made public whenever the committee fails to reach a consensus. This move, effective immediately, aligns the RBNZ with the transparency standards of the <strong>Bank of England<\/strong> and the <strong>US Federal Reserve<\/strong>, aiming to offer markets greater clarity on the internal deliberations of rate-setters.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Federal Reserve held interest rates steady at 3.5%\u20133.75% on Wednesday, citing elevated inflation risks driven by Brent 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