The Federal Reserve just delivered its second rate hold of 2026 — and markets didn’t take it well. The FOMC kept rates unchanged in the 3.5%-3.75% range, matching expectations. But it was what Fed Chair Jerome Powell said in the press conference that sent shockwaves through Wall Street.
WHAT POWELL SAID
Powell underscored the deep uncertainty surrounding the Iran oil shock and admitted the US has not made as much progress on inflation as it had hoped. He also confirmed he plans to serve as chair on a temporary basis if Kevin Warsh isn’t confirmed when his term expires in May. Most controversially, Powell pushed back directly against President Trump on both rates and a legal investigation — a rare moment of public defiance from a sitting Fed chair.
THE NUMBERS TODAY
Fed funds rate: 3.5%-3.75% unchanged. VIX: 25.09 (+12.16%). 10-year Treasury yield: 4.259% (+1.36%). Gold: $4,857 (-0.79%). Bitcoin: $71,087 (-4.42%).
WHAT INVESTORS SHOULD DO NOW
Reduce long-duration bond exposure. Avoid high-multiple growth stocks. Increase cash and short-duration bonds. Consider energy as inflation hedge. Watch Powell-Trump tension carefully.
Stay ahead of the markets.
— AI Capital Wire Team