Federal Reserve Keeps Rates Unchanged at Powell’s Last FOMC Meeting

The Federal Open Market Committee (FOMC) decided to keep interest rates unchanged at 3.5%–3.75% during its April 29, 2026 meeting, signaling a cautious approach as policymakers monitor inflation and economic growth. The decision reflects expectations that current monetary policy remains restrictive enough to control price pressures without slowing the economy too sharply. Markets had largely anticipated no rate change, making the policy stance consistent with investor expectations.

Impact on U.S. Dollar and Gold Prices

Holding interest rates steady typically supports the U.S. dollar, especially if policymakers indicate that rates may stay elevated for a longer period. A stronger dollar can increase demand for U.S. assets, particularly government bonds and cash-based investments.

Gold prices often react in the opposite direction to interest rate trends. With borrowing costs remaining high, gold may face pressure as investors favor interest-bearing assets. However, if markets begin expecting future rate cuts, gold demand could strengthen due to its role as a hedge against uncertainty and inflation.At the time of reporting Gold is trading around $4540.