Fed likely to keep interest rates unchanged on Wednesday

The American central bank, the Federal Reserve, is poised to make a significant monetary policy decision this Wednesday. Analysts, economists, and investors widely anticipate that the Federal Open Market Committee (FOMC) will hold the key interest rate steady within the current range of 3.5% to 3.75%. This rate has remained unchanged since December 2025, reflecting a cautious approach to monetary policy.

The global economic landscape presents considerable challenges that influence the Fed's stance. The sharp increase in energy prices, exacerbated by the ongoing conflict in the Middle East, coupled with stubbornly high inflation rates, leaves the Fed with little flexibility to loosen monetary policy at this juncture. The committee's decision, scheduled for announcement at 8:00 PM Central European Time, will be closely scrutinized for any signals regarding future policy adjustments.

This upcoming meeting is also notable as it is expected to be one of the last under the leadership of Jerome Powell, whose term as Fed chair is set to conclude in mid-May. Uncertainty remains regarding the Senate's confirmation of his successor, Kevin Warsh, nominated by President Donald Trump. Should the position remain vacant, Powell has indicated his willingness to temporarily continue leading the FOMC, ensuring continuity during this critical period.