Fed holds rates as Powell stays, oil tops $110

The Federal Reserve left its benchmark overnight rate at 3.50–3.75% on April 29, 2026 and provided no guidance on the timing of future moves. The decision came as West Texas Intermediate crude climbed above $110 a barrel amid renewed tensions between the United States and Iran.

At his final Federal Open Market Committee press conference as chair, Jerome Powell said he will remain on the Board of Governors while Kevin Warsh takes up a new position. Powell described recent job gains as modest on average and noted the unemployment rate has been largely steady, describing the economic backdrop as resilient even as labor demand has eased over the past year. He stated that rate cuts are not being considered while economic growth continues and reiterated his plan to stay “for the time that Kevin Warsh gets comfortable with his new role.”

Fed officials declined to provide forward guidance on the path of policy, citing heightened uncertainty tied to the conflict in the Middle East. Officials emphasized that they will assess incoming data and future committee communications rather than commit in advance to specific rate moves.

Geopolitical developments contributed to a rise in energy prices. The U.S. naval presence at the Strait of Hormuz remains in place, and President Donald Trump reiterated that he “will not lift the naval blockade without a deal on the nuclear program.” Traders said those actions and comments tightened supply concerns and pushed crude above $110 per barrel.

Financial markets responded unevenly. U.S. equities held near record levels, with the Nasdaq showing relative strength compared with other major indices. Analysts noted that the technology sector continued to drive gains while markets in Europe, Canada and Japan faced headwinds. Market participants flagged stretched valuations as a vulnerability but did not identify an immediate negative catalyst from the Fed decision.

Currency markets were range-bound after the Fed announcement. The U.S. dollar index traded roughly between 98.00 and 99.30, recovering from earlier weekly losses against lower-yielding currencies. The Canadian dollar strengthened against several peers as oil prices rose, and market participants said the loonie’s gains are likely to persist while crude remains well above $70 per barrel.

Fixed-income and commodity traders highlighted the lack of Fed forward guidance as the main takeaway. With the central bank declining to pre-commit to cuts, market pricing will depend on future statements from Warsh and incoming committee members.

Economic releases due in the coming days, including U.S. and Canadian GDP reports and PMI surveys, are expected to shape market views on short-term growth and the potential impact of higher energy prices and wartime trade disruptions.