The Federal Reserve left borrowing costs unchanged at its latest meeting, Jerome Powell's last as chair, while Powell said he will stay on the Board until legal challenges to the central bank are resolved.

Rates unchanged amid inflation and global strain

The US Federal Reserve held its benchmark interest rate steady at 3.5–3.75 percent, the central bank said, citing ongoing inflation concerns and global economic strain.

Powell stays on the Board

The meeting marked Jerome Powell's final session as Fed chair. Powell said he will not leave the Board until legal challenges to the Fed are "well and truly over," declining to set a departure date.

Powell's tenure at the top had been shadowed by scrutiny from the Trump administration. President Donald Trump had accused Powell of improper cost overruns in the renovation of the Fed's building. The US Justice Department subsequently opened a criminal probe into Powell before dropping it — a move expected to clear the path for his successor's confirmation.

Warsh advances toward confirmation

A Senate panel approved Kevin Warsh, Trump's nominee to replace Powell as Fed chair, in a party-line vote, advancing his confirmation to the full Senate.

At his confirmation hearing, Warsh denied making any deal with Trump on interest rates and pledged independence, telling lawmakers he was no "sock puppet." He backed what he described as a "policy regime change" at the central bank. Trump has publicly pushed for rate cuts, raising questions about whether Warsh would maintain the Fed's traditional distance from political pressure.