US Fed Keeps Rates Unchanged In Powell’s Likely Final Meeting

The US Federal Reserve has kept interest rates unchanged on Wednesday in what is expected to be the final policy meeting under Chair Jerome Powell. The central bank held its benchmark rate in the 3.5%–3.75% range, marking the third consecutive meeting without a change.

The impact on Indian markets is still unclear. But there was already some pressure. At 11:10 am on 30 April 2026, the Nifty 50 was down 1.5% at 23,814.60. The Sensex stood at 76,362.74, lower by 1.47%.

A Divided Decision

The latest Fed decision was not a routine one. The vote was 8–4 in favour of holding rates, which is the highest number of dissent votes since 1992. The split is being considered by some experts as a growing disagreement among policymakers, where some members wanted rate cuts to support growth, while others opposed it due to inflation risks.

Why The Fed Held Rates

Despite growing pressure to cut rates, the Federal Reserve has chosen to stay cautious for now. One big reason is rising inflation risk. Growth is still decent, but inflation has not reduced enough.

Also, geopolitical tensions, such as those between the US and Iran, are creating supply interruptions and volatility in the price of key commodities which are contributing to overall uncertainty. Due to this, the Fed has remained cautious in its decision.

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Why This Matters

The Federal Reserve holds a lot of influence over global markets. Its decisions affect liquidity, currency movements, and how money moves between countries. For India and other developing economies, this plays a key role.

When interest rates in the US go up, investors shift money there to earn better returns. That money often comes out of emerging markets. As a result, local markets can face pressure, and currencies may weaken.

Sources:

The Economic Times

Reuters