Five Takeaways from the Fed’s May Meeting, as Chairman Jerome Powell Steps Down

April 30, 2026 - 18:44

On Wednesday, April 29, 2026, Jerome Powell hosted what is widely considered to be his last meeting as Chairman of the Federal Reserve. As he stepped away from the podium at his final post-meeting press conference, he noted playfully to the media, "I won't see you next time." Powell's term as chairman expires in mid-May. Here are five key takeaways from the meeting.

First, the Fed held interest rates steady, maintaining the current range as it waits for more data on inflation. Powell emphasized that the committee is in no rush to cut rates, despite growing political pressure.

Second, the chairman acknowledged that the labor market is cooling, but not collapsing. Job gains have slowed, but wage growth remains sticky, which complicates the path to the Fed's 2 percent target.

Third, Powell addressed the upcoming leadership transition directly. He expressed confidence in the institution's independence and urged the next chair to resist political interference, a pointed remark given the current administration's public calls for lower rates.

Fourth, the Fed updated its economic projections, slightly lowering its GDP forecast for 2026 while raising its inflation outlook. Powell described the current environment as "frustratingly slow" progress.

Finally, in his farewell remarks, Powell reflected on the pandemic-era policies and the aggressive tightening cycle that followed. He defended the Fed's actions, stating that the central bank did what was necessary to prevent long-term economic damage. The search for his successor is expected to be announced within weeks.