Fed holds rates steady with highest board dissent since 1992

The Federal Reserve held rates steady at 3.50-3.75 percent as anticipated, but board dissent reached its highest level since 1992, reflecting significant disagreement over monetary policy direction among policymakers. Powell confirmed he will remain as a Fed governor after his chairmanship ends mid-May and characterized Trump's criticism as "unprecedented."

Powell's decision to remain involved in Fed governance breaks with precedent and raises new questions about institutional independence. The rate hold contributed to continued weakness in Wall Street, with stocks extending losses. The Fed also revised down its 2026 economic growth forecasts amid rising uncertainty.

Meanwhile, earnings reports from Big Tech giants—Amazon, Microsoft, Meta, and Alphabet—command investor attention. Wall Street is closely scrutinizing whether massive AI investments are translating into meaningful returns, as concerns about an AI-driven software disruption persist.