Fed holds for third straight meeting in April, most dissents seen as hawkish
The Federal Reserve's April FOMC meeting held rates at 3.75% for a third consecutive time. The hold itself was expected, but four dissents marked the most since 1992. Trump appointee Stephen Miran dissented in favor of a 25bp cut, while three other members dissented in the opposite direction, opposing language suggesting an easing bias, signaling hawkish resolve.
Chair Powell indicated he intends to remain on the Board even after his chairmanship ends, breaking with the customary practice of resigning entirely when a chair's term concludes. He said he would stay until legal risks raised by President Trump, including threats of criminal prosecution, are fully resolved. Trump renewed his social media criticism, calling Powell 'Mr. Too Late' for consistently cutting rates too slowly.
With three of the four dissenters revealing hawkish leanings, markets interpreted this as a sign of a more hawkish Fed going forward, pushing Treasury yields higher. Higher yields reduce the relative appeal of equities, weighing on the broader market.