Divided Fed Officials Hold Rates; Powell to Stay as Governor

Federal Reserve officials left rates unchanged with an 8-4 vote, revealing deep division over the easing bias amid uncertainty from the Middle East conflict. Oil prices surged above $120, with the forward curve suggesting sustained highs through year-end, complicating Fed policy. Chairman Powell confirmed he will stay as governor, citing threats to Fed independence. Market implications include front-end Treasury value and long-end avoidance. - Fed held rates steady, with four dissents, the most since 1992. - Three dissenters wanted to remove the easing bias from the statement. - Powell said he will remain as a Fed governor, citing concerns over institutional attacks. - Brent crude broke above $120, up 8% on the session, for an eighth consecutive gain. - The December Brent contract made new all-time highs, signaling elevated prices through year-end. - Jim Bianco warned high oil will keep inflation sticky and prevent Fed easing. - Jeffrey Rosenberg saw value in front-end Treasuries but cautioned on long-end due to term premium. - Equities were largely unchanged despite big commodity and bond moves.