Review: The Fed Remains on Hold, But With A Severely Divided FOMC

In this paper, we discuss:

•         The Fed kept rates on hold, but with an unusually divided FOMC and rising internal disagreement;

•         Persistent inflation pressures, driven in part by energy prices, alongside resilient economic activity;

•         A shift toward a more cautious, data-dependent stance, with no clear bias toward immediate rate cuts;

•         Elevated policy uncertainty, including leadership transition and concerns over Fed independence;

•         Limited scope for near-term easing, with gradual cuts expected only as inflation moderates

Download PDF: Fed Review – April 2026