The FOMC held rates at 3.50-3.75% for a third straight meeting with four dissents, while Powell announced he will remain a Fed Governor after Kevin Warsh takes the chair on May 15.
The Federal Reserve held interest rates steady at 3.50-3.75% for a third consecutive meeting on April 29, but an unusual four dissents and Jerome Powell's surprise decision to remain a Fed Governor after his chairmanship ends sent mixed signals to crypto markets.
The FOMC concluded its April 28-29 meeting by keeping the federal funds rate at 3.50-3.75%, citing elevated inflation driven by global energy prices. While the hold was widely expected, the decision drew four dissents, an unusually high number that signals deepening divisions within the committee over the pace of future policy moves.
Jerome Powell used what was his final press conference as Fed Chair to announce he will remain as a Fed Governor after Kevin Warsh takes over the chair on May 15. The move was unexpected, as departing chairs typically resign from the board entirely. Bitcoin traded near $75,800 following the announcement, while Ethereum hovered around $2,250.
The four dissents reveal a committee increasingly split between members who want to resume cutting rates and those who favor holding or even tightening. For crypto markets, this lack of consensus means the path forward for monetary policy is less predictable than at any point in 2026.
Powell staying on the board as a Governor adds another layer of complexity. His continued presence could act as a counterweight to Warsh, who has expressed skepticism toward aggressive easing. Traders will need to assess whether the new dynamic leads to more or fewer rate cuts in the second half of the year, a key variable for Bitcoin and risk assets broadly.
Kevin Warsh officially takes over as Fed Chair on May 15, and his first press conference will set the tone for monetary policy under the new leadership. Markets are currently pricing in one rate cut before year-end, but the four dissents suggest that could shift in either direction. The next CPI print and jobs data will likely determine whether the committee coalesces around a cut at the June meeting.
This is a developing story. The Fed leadership transition in May will reshape market expectations for the remainder of 2026. Crypto traders should monitor Warsh's early statements and any shifts in the dot plot at the June FOMC meeting.
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Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
