By Jack Pitcher
Here's how investors, analysts and academics are reacting to a Fed decision that didn't surprise, but revealed divisions between officials over the direction of policy.
Kay Haigh, global co-head of fixed income at Goldman Sachs Asset Management:
"While upside risks to inflation have increased, the Fed is keeping one eye on potential weakness in growth and the labor market. This balance could see rates being brought back down to neutral later this year; however, the FOMC will be sensitive to a re-escalation in Iran and rising energy prices, and could keep policy restrictive in that scenario."
Art Hogan, chief market strategist at B. Riley Wealth Management:
"The statement showed that the theme of the two-day meeting was clearly about the risk that the war in Iran has brought to both sides of the central bank's mandate. One gets the sense that there will be several meetings at least before we see any rate changes by the FOMC, agnostic to who the Chair of the Fed is."
Dan Siluk, portfolio manager at Janus Henderson Investors:
"The most notable shift is on inflation. Inflation is now described as "elevated," with an explicit reference to recent increases in global energy prices. Compared with the previous statement, this represents a subtle but important re-framing. Rather than emphasizing progress or stability, the Fed is drawing attention to renewed upside risks."
Jeffrey Roach, chief economist at LPL Financial:
"Expect more dissents in the near term and expect more volatility in the rates markets. The incoming chair will face challenges building consensus around a new policy regime, particularly since the Fed completed a formal review of its policy framework just last year, in 2025. Further, it's no surprise that potential rate hikes are priced back in the futures markets. Ultimately, uncertainty will remain until the Middle East conflict is decidedly over."
Mohamed El-Erian, former CEO of Pimco:
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(END) Dow Jones Newswires
April 29, 2026 14:56 ET (18:56 GMT)
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