Fed Expected to Hold Rates at Powell's Possible Last Meeting

The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, which could be the final one chaired by Jerome Powell. President Donald Trump has repeatedly signaled his intent to remove Powell before his term ends, making this meeting a potential turning point for the Fed's leadership. No rate move is expected, with markets largely pricing in a hold as officials wait for more clarity on inflation and economic growth. Powell's tenure has been defined by the most aggressive rate-hiking cycle in decades, aimed at bringing down post-pandemic inflation. The Fed raised rates sharply from near zero to over 5% before beginning cautious cuts. The central bank now sits in a watchful stance, balancing sticky inflation against a slowing jobs market. The bigger story is what comes after. If Trump replaces Powell, the new chair could shift the Fed's tone toward faster rate cuts, which markets would reprice quickly. Bond yields, the dollar, and rate-sensitive sectors like housing and banking would all react to any credible leadership change. Watch for Powell's post-meeting press conference for any signal on his own read of the situation.