Fed likely to leave rates unchanged at what may be Powell's last meeting, as Warsh to advance

WASHINGTON (AP) — Wednesday will likely be a momentous day for the future of the Federal Reserve as Chair Jerome Powell could signal he will stay with the Fed even as a Senate panel is expected to confirm his replacement.

Powell will preside over what will probably be his last meeting as chair and hold a news conference Wednesday afternoon, when he may say whether he will take the unusual step of remaining on the central bank's board of governors, even after his term as chair ends May 15.

Separately, the Senate Banking Committee is scheduled to vote on the nomination of Kevin Warsh to succeed Powell. The nomination is expected to be approved on a party-line vote, and will then be taken up by the full Senate next month. President Donald Trump nominated Warsh, a former top Fed official, in January. Last year, Warsh echoed Trump's calls for the Fed to lower its key interest rate, leading many Democrats in Congress to question how independently he will operate as Fed chair.

The Fed is widely expected to keep its key rate unchanged Wednesday for a third straight meeting at 3.6%. Most policymakers believe at that level, the rate can still cool inflation by slowing borrowing and spending, but not so much that it will drag down hiring or raise unemployment.

Still, a key issue for the news conference Wednesday is what Powell says, if anything, about his future. Powell serves a separate term as a governor that lasts until January 2028. Chairs typically leave the board when their leadership terms end, but Powell has signaled he could remain. He would be the first chair to do so since 1948.

If Powell, who has made protecting Fed independence a key part of his legacy, chooses to stay, he would deprive Trump of the opportunity to pick his replacement and fill another seat on the Fed’s seven-member board. Three of the seven current governors are Trump appointees.

At the same time, it could worsen tensions with the Trump administration and would create what some analysts refer to as a “two Popes” scenario, with a chair and former chair both on the Fed’s board. In that case, divisions among policymakers could increase, if some decided to follow Powell's lead rather than Warsh's.

Warsh argued for rate cuts last year, but is unlikely to be able to reduce borrowing costs anytime soon, given that most policymakers have signaled they would prefer to wait and evaluate the Iran war’s impact on the economy.

The leadership turmoil comes while the economy remains unusually murky, putting the Fed in a difficult spot. Inflation has jumped to 3.3%, a two-year high, as the war has sharply raised gas prices. That makes it harder for the central bank to reduce rates. The Fed typically leaves rates unchanged, or even raises them, if inflation is worsening.

At the same time, hiring has ground almost to a halt, leaving those without jobs frustrated by the difficulty of finding new ones. Typically, the Fed cuts rates when the job market is weak, to spur more spending and job gains.

But layoffs also remain low, as employers appear to be following a “ low-hire, low-fire ” strategy. Many Fed officials have suggested that as long as the unemployment rate is low, the central bank doesn't need to cut rates to spur more spending and hiring. Unemployment declined to 4.3% in March, from 4.4%.

A key change economists will look for Wednesday is whether the Fed alters the statement it issues after each meeting to signal that it is possible that their next move could be either a rate cut or a hike. Right now, the statement indicates that any change to its rate would be a cut. According to minutes of its last meeting in March, many of the 19 participants on the Fed’s rate-setting committee support considering a hike, though it's likely short of a majority.

Kevin Warsh is sworn in during his nomination hearing to be a member and chairman of the Federal Reserve Board of Governors before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington Tuesday, April 21, 2026. (AP Photo/Jose Luis Magana)

FILE - President Donald Trump listens to Federal Reserve Chairman Jerome Powell speak during a visit to the Federal Reserve, July 24, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson, File)

Kevin Warsh testifies during his nomination hearing to be a member and chairman of the Federal Reserve Board of Governors before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington Tuesday, April 21, 2026. (AP Photo/Jose Luis Magana)

FILE - Federal Reserve Chair Jerome Powell addresses students at Harvard University, March 30, 2026, in Cambridge, Mass. (AP Photo/Charles Krupa, File)

Kevin Warsh testifies during his nomination hearing to be a member and chairman of the Federal Reserve Board of Governors before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill, in Washington Tuesday, April 21, 2026. (AP Photo/Jose Luis Magana)

BUFFALO, N.Y. (AP) — When Hampus Lindholm got the puck inside Boston's blue line after teammate Fraser Minten broke up the Buffalo Sabres' rush, and the Bruins defenseman knew immediately who to look for.

Sure enough, there was David Pastrnak already heading toward Buffalo’s zone.

Set up by Lindholm, Pastrnak scored on a breakaway 9:14 into overtime, and the Bruins avoided elimination with a 2-1 win in Game 5 of their first-round playoff series on Tuesday night.

“He’s pretty special when it comes to those opportunities, too, so it was fun to see it go in,” Lindholm said.

Pastrnak said the chemistry he has with Lindholm is a result of them being neighbors.

“We always call it the neighbor connection,” Pastrnak said. “Seems like anytime he has the puck and I have an opening, I have the confidence that he’s gonna find me.”

The series shifts back to Boston for Game 6 on Friday night, with Buffalo still seeking to clinch its first playoff series victory since eliminating the New York Rangers in six games of a 2007 second-round series. The Sabres are in the playoffs for only the third time since, and after snapping an NHL record 14-season playoff drought this year.

Elias Lindholm also scored for Boston which overcame a 1-0 deficit. Jeremy Swayman stopped 25 shots, including foiling Jason Zucker set up in front 3:30 into the extra period.

Rasmus Dahlin scored for Buffalo and Alex Lyon stopped 27 shots.

“He’s always lurking,” Lyon said of Pastrnak, whom the goalie robbed on several chances. “Obviously, he’s one of the best players in the league,” Lyon added of a player who reached the 100-point mark for a fourth straight season. “It’s just one play at the end from a really good player. That’s usually how these things go. And now it’s just incumbent on us to move forward.”

The Sabres were caught up ice, and the Bruins jumped into making a line change, with Pastrnak coming off the bench as the turnover occurred.

Accepting Lindholm’s pass in stride as he crossed Buffalo’s blue line, Pastrnak drove in on net a step ahead of Buffalo’s Mattias Samuelsson. He faked cutting across the front and nearly lost his balance before slipping the puck inside the right post.

“He always gets it done. And what a nice finish from him,” coach Marco Sturm said of the 12th-year player. “I’m just very happy because this guy puts a lot of pressure on himself and he wants to be the difference. And today he was.”

The goal was the 41st of Pastrnak’s playoff career, and second in overtime. He scored Boston’s last overtime goal, also coming in an elimination game, to seal the Bruins’ 2-1 win over Toronto in Game 7 of their 2024 first-round series.

Lindholm tied it 9:24 into the second period after his bad-angle shot bounced into the slot. Lindholm got to the loose puck first and, with his back to the net, spun around and fired in a low shot through a crowd.

Dahlin opened the scoring at 3:35 with his first playoff goal, and Buffalo’s first power-play goal in nearly a month. Driving up the left wing, Zucker’s initial pass attempt was blocked before recovering the puck and feeding Dahlin for a one-timer in the right circle.

The Sabres had gone 0-of-17 with the man advantage this series, and entered the playoffs failing to convert 22 straight chances, dating to a 4-3 win over the New York Islanders on March 31.

The Bruins played without second-line forward Viktor Arvidsson, who was hurt in the first period of Game 4 on Sunday.

Buffalo lost rookie forward Noah Ostlund to a lower-body injury in the first period.

Coach Lindy Ruff didn’t reveal what the injury was, but said, “it doesn’t look good.” Ostlund had just returned to the lineup from an upper-body injury in Game 3, in which he had a goal and assist.

The Bruins have won back-to-back outings in Buffalo after squandering a 2-0 lead in the final 7:58 of a 4-3 loss in Game 1. The Sabres won both outings in Buffalo, and were coming off a 6-1 win on Sunday.

“We’re in a good spot. We should be ready for the next one,” Dahlin said. “It’s a tight game and stuff happens, so we’re ready for going to Boston.”

AP NHL playoffs: https://apnews.com/hub/stanley-cup and https://apnews.com/hub/nhl

Boston Bruins right wing David Pastrnak (88) puts the puck past Buffalo Sabres goaltender Alex Lyon (34) during the overtime period in Game 5 of a first-round NHL hockey Stanley Cup playoff series Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)

Boston Bruins right wing David Pastrnak (88) celebrates his goal during the overtime period in Game 5 of a first-round NHL hockey Stanley Cup playoff series against the Buffalo Sabres Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)

Buffalo Sabres goaltender Alex Lyon (34) makes a save during the third period in Game 5 of a first-round NHL hockey Stanley Cup playoff series against the Boston Bruins Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)

Boston Bruins goaltender Jeremy Swayman (1) stops a shot by Buffalo Sabres left wing Jason Zucker (17) during the first period in Game 5 of a first-round NHL hockey Stanley Cup playoff series Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)

Buffalo Sabres goaltender Alex Lyon (34) makes a save during the second period in Game 5 of a first-round NHL hockey Stanley Cup playoff series against the Boston Bruins Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)

Boston Bruins center Elias Lindholm (28) celebrates his goal with defenseman Charlie McAvoy (73)during the second period in Game 5 of a first-round NHL hockey Stanley Cup playoff series against the Buffalo Sabres Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)

Buffalo Sabres teammates celebrate a goal by defenseman Rasmus Dahlin (26) during the first period in Game 5 of a first-round NHL hockey Stanley Cup playoff series against the Boston Bruins Tuesday, April 28, 2026, in Buffalo, N.Y. (AP Photo/Jeffrey T. Barnes)