The Fed report

highlights from The FOMC Policy Update
APRIL 30, 2026

Yesterday, the Federal Open Market Committee (FOMC) released its statement and held a press conference following the conclusion of its April meeting.

FOMC Policy Updates: Key Highlights

  • Target Range Maintained: For the third consecutive meeting, the FOMC maintained the target range for the federal funds rate at 3.50-3.75%. The statement noted that “[d]evelopments in the Middle East are contributing to a high level of uncertainty about the economic outlook” and highlighted the surge in global energy prices as a key contributor to elevated inflation measures.
  • Continued FOMC Division: For the seventh consecutive meeting, the FOMC decision was not unanimous, as Fed Governor Stephen Miran voted to lower the target range by 25 basis points. In addition, Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan supported maintaining the target range for the federal funds rate but did not support the continued inclusion of language in the April statement that indicates an easing bias.
  • Chair Powell’s Final Press Conference: Chair Powell emphasized that, while his term as Chair ends on May 15th, he will continue to serve on the Board of Governors for a period of time “to be determined,” which will be driven by his determination that the criminal investigations into him and the Fed are “well and truly over, with transparency and finality.”

notable commentary

  • Monetary Policy Positioning: Against the backdrop of the ongoing conflict in the Middle East and soaring energy prices, inflationary pressures – and their implications for the expected neutral rate level – were a primary focus during the Q&A. While acknowledging that “inflation is kind of misbehaving,” Chair Powell noted that he views the FOMC’s policy stance as being “at the high end of neutral or perhaps mildly restrictive,” which “is the right place to be” and positions the Fed “in a very good place for [the FOMC] to wait and see” as the Committee continues to assess the impacts of energy shocks and tariffs filtering through the U.S. economy.
  • Fed Independence: Throughout the press conference, Chair Powell emphasized the importance of maintaining central bank independence to ensure that monetary policy decisions are driven by consensus and remain free from potential political influence. He framed his decision to remain on the Board of Governors following the end of his term as Chair, which is not consistent with historical precedent, as being motivated by the recent “series of legal attacks on the Fed.” He further stated that it could help to serve as a check and balance for Fed independence until he “sees that things have calmed down.” Despite making his concerns clear, he noted that he plans to “keep a low profile as a Governor” and concluded his prepared remarks by stating, “I am confident that the Fed will continue to do its work with objectivity, integrity, and a deep commitment to serve the American people.”
  • Fed Chair Transition Process: On April 29th, the Senate Banking Committee voted to advance Kevin Warsh’s nomination as the next Fed Chair. Chair Powell noted that he expects it to be a “normal, standard transition process” as Kevin Warsh steps into the Fed leadership role, which is anticipated to occur in May following the full U.S. Senate confirmation vote.
  • Powell’s Legacy as Chair: In response to questions about his legacy and monetary policy actions during his tenure as Chair, Powell highlighted that the Fed has navigated an “extraordinarily challenging set of supply shocks,” particularly over the last six years, including the Covid-19 pandemic, the invasion of Ukraine, the regional banking crisis, the ‘Liberation Day’ tariff announcements, and the ongoing Middle East conflict and associated surge in oil prices. Throughout these periods of volatility, he noted that the U.S. economy has remained “remarkably resilient,” and he emphasized that the Fed has consistently prioritized balancing its dual mandate goals of maximum employment and stable prices, “but [that] these are really tough, difficult judgments.”

Important Disclosures
This report includes the thoughts and opinions of AGNC Investment Corp. (“AGNC”) and is being shared for informational purposes only and should not be construed as investment advice. Neither the Federal Reserve nor any other third party has contributed to or been involved in AGNC’s preparation of these materials. AGNC does not endorse or adopt the views of the Federal Reserve or any third party.

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