The Federal Reserve kept its benchmark rate unchanged at its latest meeting as Jerome Powell, chairing his final session, said he will not resign from the Board until legal challenges from the Trump administration are resolved.

Rate held as Powell chairs final meeting

The Federal Reserve kept its benchmark interest rate steady at 3.5–3.75 percent at what was Jerome Powell's final meeting as chair, citing inflation concerns and global economic strain as reasons to hold, Powell said.

Powell told reporters he intends to remain on the Federal Reserve Board after his chairmanship ends, saying he will not leave until legal challenges posed by the Trump administration are "well and truly over."

Background: probes and a successor in the pipeline

The Justice Department earlier dropped a criminal probe into Powell that had centred on allegations by President Donald Trump of improper cost overruns in renovating the Fed's building. The department's announcement was expected to clear the path for the confirmation of Powell's successor.

A Senate panel has already advanced Kevin Warsh's nomination to replace Powell as Fed chair on a party-line vote. During his confirmation hearing, Warsh denied striking a deal with Trump on interest rates and said he backed what he called "policy regime change" at the central bank. He also told senators he is not a "sock puppet" for the administration, pushing back on doubts about his independence at a time when Trump has publicly pressed for rate cuts.

Powell addresses Fed independence

At his post-decision news conference, Powell addressed the legal pressure on the institution directly, reaffirming the Fed's independence as a central theme. His remarks came as the US-Israel conflict with Iran and domestic inflation dynamics were also raised by reporters.

The rate decision itself left the Fed's policy stance unchanged, with officials balancing persistent inflation concerns against broader global economic uncertainty.