The Federal Reserve is widely expected to keep interest rates unchanged at its upcoming policy meeting, which is likely to be Jerome Powell's final session as chair of the central bank.

Powell has served as Fed chair since 2018, leading the institution through significant economic challenges including the COVID-19 pandemic and subsequent inflation surge. The current meeting represents what multiple sources indicate will be his last as the head of the Federal Reserve.

Kevin Warsh has emerged as the likely successor to Powell, according to reporting. Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011 and has been selected as the incoming administration's choice to lead the central bank.

Warsh is expected to face a Senate Banking Committee confirmation process that will examine his vision for the Federal Reserve's future direction. The confirmation hearings will provide insight into potential policy changes under new leadership.

The interest rate decision comes as the Federal Reserve continues to navigate economic conditions and inflation concerns. The central bank has been managing monetary policy through a period of economic uncertainty and changing market conditions.

The transition in leadership at the Federal Reserve represents a significant shift for the institution, which plays a crucial role in setting U.S. monetary policy and maintaining financial stability.