Key Points
-
Although Jerome Powell had the lowest dissent rate per meeting of any Fed chair since 1978, his final FOMC meeting was marked by a record four dissents.
-
The Fed minutes from the April FOMC meeting point to a desired shift away from an easing bias, leaving the door open for rate hikes.
-
The inflation outlook is worsening, leading to a potential double whammy for a historically expensive stock market.
- 10 stocks we like better than S&P 500 Index ›
Although Jerome Powell is no longer Fed chair (he still serves on the Board of Governors), his final Federal Open Market Committee (FOMC) meeting on April 29 was a doozy that may end up roiling the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC).
Over the last 48 years, no Fed chair has had a lower dissent rate per meeting than Powell. Yet, the outgoing head of the Fed’s last meeting in charge was marked by a historic four dissents — the highest number since 1992. Stephen Miran favored a quarter-point cut to the federal funds target rate, while Beth Hammack, Neel Kashkari, and Lorie Logan didn’t support the inclusion of an easing bias statement by the FOMC.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Jerome Powell’s final FOMC meeting was marked by a historic number of dissents. Image source: Official Federal Reserve Photo.
Following the release of the Fed minutes from the April meeting (i.e., a detailed record of the debates and insights from policymakers behind closed doors), we learned that this dissent may be far greater than the FOMC statement on April 29 led on.
Did the FOMC just signal a major upcoming shift in monetary policy?
The Fed minutes primarily paint a picture of patience, with policymakers preaching a wait-and-see approach. Given the persistent price stickiness of President Trump’s tariffs on the goods sector and the energy price shock associated with the Iran war, the 12-person body responsible for setting the nation’s monetary policy doesn’t want to jump the gun.
But in the section that detailed FOMC participants’ views on current conditions and the economic outlook, a different story emerged. As stated in the Fed minutes:
A majority of participants highlighted, however, that some policy firming would likely become appropriate if inflation were to continue to run persistently above two percent. To address this possibility, many participants indicated that they would have preferred removing the language from the postmeeting statement that suggested an easing bias regarding the likely direction of the Committee’s future interest rate decisions.
That doesn’t say three participants disagreed with the easing bias statement. It says “many,” implying a likely shift to a neutral bias, perhaps as soon as the June meeting.
The Fed minutes also make clear that rate hikes are on the table in the event that inflation continues to climb or remains well above 2%. As the inflationary effects of the Iran move begin to move beyond the energy sector, another surge in prices is likely.
BREAKING: The odds of the Fed HIKING interest rates in 2026 surge to a new high of 37%.
US treasury yields are now up to 2007 levels, inflation is heading above 4%, and rate cuts are no longer in discussion.
Talk about a turn of events. pic.twitter.com/QXYSskMBkG
— The Kobeissi Letter (@KobeissiLetter) May 19, 2026
This is worrisome news for a historically expensive stock market that was counting on several rate cuts in 2026-2027 to fuel the artificial intelligence (AI) data center build-out. With the FOMC’s easing bias potentially being removed, the prospect of rate hikes, not cuts, becomes more likely.
Higher interest rates can be double trouble for Wall Street. They make borrowing costlier, which can stymie the stock market’s biggest catalyst: AI. Additionally, higher interest rates would be expected to raise yields on fixed-income securities. If investors can get a safe return with bonds, why would they invest in a historically pricey stock market?
Powell’s final FOMC meeting as Fed chair will be a memorable one that may be looked back on as a turning point for Wall Street.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
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*Stock Advisor returns as of May 25, 2026.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Key Points
-
Although Jerome Powell had the lowest dissent rate per meeting of any Fed chair since 1978, his final FOMC meeting was marked by a record four dissents.
-
The Fed minutes from the April FOMC meeting point to a desired shift away from an easing bias, leaving the door open for rate hikes.
-
The inflation outlook is worsening, leading to a potential double whammy for a historically expensive stock market.
- 10 stocks we like better than S&P 500 Index ›
Although Jerome Powell is no longer Fed chair (he still serves on the Board of Governors), his final Federal Open Market Committee (FOMC) meeting on April 29 was a doozy that may end up roiling the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC).
Over the last 48 years, no Fed chair has had a lower dissent rate per meeting than Powell. Yet, the outgoing head of the Fed’s last meeting in charge was marked by a historic four dissents — the highest number since 1992. Stephen Miran favored a quarter-point cut to the federal funds target rate, while Beth Hammack, Neel Kashkari, and Lorie Logan didn’t support the inclusion of an easing bias statement by the FOMC.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Jerome Powell’s final FOMC meeting was marked by a historic number of dissents. Image source: Official Federal Reserve Photo.
Following the release of the Fed minutes from the April meeting (i.e., a detailed record of the debates and insights from policymakers behind closed doors), we learned that this dissent may be far greater than the FOMC statement on April 29 led on.
Did the FOMC just signal a major upcoming shift in monetary policy?
The Fed minutes primarily paint a picture of patience, with policymakers preaching a wait-and-see approach. Given the persistent price stickiness of President Trump’s tariffs on the goods sector and the energy price shock associated with the Iran war, the 12-person body responsible for setting the nation’s monetary policy doesn’t want to jump the gun.
But in the section that detailed FOMC participants’ views on current conditions and the economic outlook, a different story emerged. As stated in the Fed minutes:
A majority of participants highlighted, however, that some policy firming would likely become appropriate if inflation were to continue to run persistently above two percent. To address this possibility, many participants indicated that they would have preferred removing the language from the postmeeting statement that suggested an easing bias regarding the likely direction of the Committee’s future interest rate decisions.
That doesn’t say three participants disagreed with the easing bias statement. It says “many,” implying a likely shift to a neutral bias, perhaps as soon as the June meeting.
The Fed minutes also make clear that rate hikes are on the table in the event that inflation continues to climb or remains well above 2%. As the inflationary effects of the Iran move begin to move beyond the energy sector, another surge in prices is likely.
BREAKING: The odds of the Fed HIKING interest rates in 2026 surge to a new high of 37%.
US treasury yields are now up to 2007 levels, inflation is heading above 4%, and rate cuts are no longer in discussion.
Talk about a turn of events. pic.twitter.com/QXYSskMBkG
— The Kobeissi Letter (@KobeissiLetter) May 19, 2026
This is worrisome news for a historically expensive stock market that was counting on several rate cuts in 2026-2027 to fuel the artificial intelligence (AI) data center build-out. With the FOMC’s easing bias potentially being removed, the prospect of rate hikes, not cuts, becomes more likely.
Higher interest rates can be double trouble for Wall Street. They make borrowing costlier, which can stymie the stock market’s biggest catalyst: AI. Additionally, higher interest rates would be expected to raise yields on fixed-income securities. If investors can get a safe return with bonds, why would they invest in a historically pricey stock market?
Powell’s final FOMC meeting as Fed chair will be a memorable one that may be looked back on as a turning point for Wall Street.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 25, 2026.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
