Producers of metals, grains and other raw materials fell after the Federal Reserve's statement stirred interest-rate fears.
The Fed held rates steady, but Powell acknowledged that the committee had subtly shifted, and could move away from an "easing bias" as soon as the next meeting. Three Fed presidents, Beth Hammack of Cleveland, Neel Kashkari of Minneapolis, and Lorie Logan of Dallas, backed the rate decision but dissented on the language, included in the statement for the last two years, that has suggested a rate cut is more likely than a rate hike. A fourth official, Fed governor Steven Miran, dissented in the opposite direction, favoring a rate cut.
In the post-decision press conference, Powell said there was still great uncertainty about the duration of the closure of the Strait of Hormuz and the ultimate effect on the economy of an oil shock. He acknowledged, however, that rising oil prices had already "bled through" to consumer prices in the form of airfares, a phenomenon that could become much more widespread.
In an illustration of the hawkish interpretation of the Fed statement and Powell's comments, Treasury yields and the U.S. dollar rose, and the odds of a rate hike this year increased slightly on Fed funds futures markets.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
April 29, 2026 17:25 ET (21:25 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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