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Fed Chair Jerome Powell Says Inflation Expectations Have Risen Recently

The Federal Reserve kept rates at 3.50% to 3.75% in an 8-4 vote, while markets reacted with weaker stocks and gold and a stronger dollar after officials maintained a limited easing outlook.

Fact Check
The rate-hold portion is well supported by both the crypto.news report and the Odaily flash, which align on an unchanged 3.75% upper bound, implying the 3.50%–3.75% target range remained in place. The claim that this was the third straight 2026 pause is directly stated by crypto.news. The statement-language shift is supported by comparing the official January 28 Federal Reserve statement search snippet, which says inflation was "somewhat elevated," with the April 29 Federal Reserve news/search snippet indicating, "Inflation is elevated, in part reflecting the recent increase in global energy prices." The KobeissiLetter X post independently describes the same wording change. Because the direct April 29 official statement page could not be fetched due to tool limits, confidence is medium rather than high, but the available evidence points to the claim being likely true.
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Summary

The Federal Reserve kept its policy rate unchanged at 3.50% to 3.75%, extending its pause, and the decision passed in an 8-4 FOMC vote. Following the announcement at 2 a.m. Beijing time, U.S. stocks fell, gold slipped, and the dollar index rose. The new report also says officials in March projected one rate cut this year and another in 2027, adding detail to the policy outlook. This follows earlier reporting that Powell said recent inflation expectations had risen while longer-term expectations remained aligned with the Fed’s 2% target.

Terms & Concepts
  • Federal Open Market Committee: The Federal Reserve’s policy-setting panel that decides U.S. interest rates and guides monetary policy.
  • Inflation expectations: Forecasts by households, businesses, or markets about future price increases, which can influence spending, wages, and monetary policy.
  • Dollar index: A measure of the U.S. dollar’s value against a basket of major foreign currencies, often used to gauge broad dollar strength.