The Federal Reserve kept its interest rates unchanged in what could be Jerome Powell's last meeting as the chair of the central bank.
The central bank noted that job gains have "remained low" and inflation "elevated," partly as a result of the "recent increase in global energy prices."
The Fed went on to say that the war in Iran is "contributing to a high level of uncertainty about the economic outlook."
The decision included wording about a rate cut in the future, but three officials voted in favor of removing it. A fourth official, Stephen Miran, favored a rate cut in the April meeting.
Uncertainty surrounds the future of the Federal Open Market Committee after the Senate Banking Committee approved on Wednesday Kevin Warsh's nomination to be its next chair, clearing a key hurdle for his confirmation.
The vote fell along party lines, with 13 Republicans voting in favor of it and 11 Democrats against the nomination. The GOP got enough votes to advance the nomination after Republican Senator Thom Tillis said he would support it following the Department of Justice's dropping of a criminal investigation on the current Fed chair, Jerome Powell.
Powell could remain at the fed after May 15, when his tenure as chair ends. He has not been given indication about his future, but President Donald Trump has repeatedly criticized him for not cutting rates over the past months. His term as governor only expires in January 2028.
Warsh's nomination is now expected to go to the Senate for a final confirmation vote in the Republican-controlled Upper House. He has faced scrutiny over concerns about his independence. A recent survey, conducted by CNBC showed that 46% of respondents believe he will only be somewhat independent or not independent at all.
Warsh was grilled by senators about his independence should he be confirmed in a hearing earlier this month, particularly considering Trump's demands that interest rates are cut soon to boost economic activity, as well as the stock market.
He claimed that Trump "never once asked me to commit to any particular interest rate decision, period, and nor would I ever agree to do so if he had."
The president, however, was asked last week if he would be disappointed if Warsh did not push for lower rates as soon as he joined the Fed. "I would," Trump said.
