AI Summary
5 min readFed Holds Rates Steady and Ends the Powell Era Deeply Divided
The Federal Reserve held interest rates steady at its April meeting, but the unanimous surface of that decision masked a central bank more fractured than it has been in decades. Four of twelve voting members dissented — the most since 1992 — and the divisions ran in opposite directions. One official wanted a rate cut; three others dissented against the Fed's signal that its next move would be a cut, preferring instead to keep the possibility of a hike on the table. The result was a hawkish message that sent traders scrambling: by the end of the day, markets saw a rate hike as more likely than a cut for the rest of the year. The Dow slipped, bond yields rose, and energy prices touched wartime highs after Fed Chair Jerome Powell warned that inflation would likely rise in the months ahead.
Powell's Unusual Exit and the Threat to Fed Independence
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What you'll learn
- 1 (00:18) **Fed Holds Rates Steady Amid Deep Division and the End of the Powell Era** - The central bank keeps rates unchanged, but the meeting is marked by historic dissent and a departing chair’s warning.
- 2 (04:05) **Market Reaction to Hawkish Fed Signals** - Traders and markets adjust after the Fed’s announcement, with rate hike bets increasing.
- 3 (04:28) **Bill Ackman’s Pershing Square Goes Public, Stock Drops** - The hedge fund manager’s company and a stock-picking fund begin trading.
- 4 (04:46) **Tech Earnings Flood In: Meta, Google, Amazon, Microsoft** - A flurry of after-hours reports, highlighted by Meta’s strong revenue but cautious spending outlook.
- 5 (05:18) **Kone to Acquire TK Elevator for Almost $24 Billion** - Finland’s Kone will buy its German rival, creating the world’s biggest elevator company.
- 6 (06:19) **Families of Mass Shooting Victims Sue OpenAI** - The families of seven victims from a shooting in British Columbia allege OpenAI was negligent for failing to report the suspect’s violent ChatGPT conversations to police.
- 7 (06:56) **Supreme Court Narrows Voting Rights Act Protections** - In a 6-3 decision, the court ends protections against “vote dilution” for minority voters.
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Guests on this episode
Show Notes
P.M. Edition for April 29. In an unusual move, Federal Reserve Chair Jerome Powell said today that he plans to stay on the Fed’s board after his term as chair ends next month. WSJ economics reporter Matt Grossman explains Powell’s reasoning, and what divisions within the central bank could mean for interest rates. Plus a Supreme Court decision today limits how states use voters’ race to draw voting districts. James Romoser, who covers the Supreme Court for the Journal, says that could lead to a loss of Democratic seats in some states. And the Pentagon gives its first precise estimate for how much the Iran war has cost the military so far: $25 billion. Alex Ossola hosts.
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