WASHINGTON (TNND) — The Federal Reserve held interest rates steady on Wednesday, keeping its benchmark rate at about 3.6% after three cuts in 2025.

"Today, the Federal Open Market Committee decided to leave our policy interest rate unchanged," Federal Reserve Chair Jerome Powell said during a news conference.

"There was broad support on the Committee for holding today," he later added.

In a statement published online, the central bank said there are signs the job market has stabilized, while it also noted that growth was "solid," which is an upgrade from December's characterization as "modest."

In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective," according to Wednesday's statement.

"In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook," the statement noted.

A day before, President Donald Trump said he is poised to announce his pick to replace Powell. The president added that interest rates will significantly drop as soon as a new Fed chair is at the helm.

"By the way, when we have a great Fed chairman -- I think we’re going to have one -- I’ll announce it pretty soon. You’ll see rates come down a lot," Trump said during an event in Iowa on Tuesday.

When pressed by reporters, Powell declined to comment about his potential replacement. He did, however, go into detail when asked about any advice he'd share with his potential successor.

"Honestly, I'd say a couple of things. One is stay out of elected politics. Don't get pulled into elected politics. Don't it do it," Powell said.

"Another is our window into Democratic accountability is Congress -- and it's not a passive burden for us to go to Congress and talk to people. It's an affirmative, regular obligation," he added. "If you want Democratic legitimacy, you earn it by your interactions with our elected overseers. And so, it's something you need to work hard at. I have worked hard at it."

Powell also said that while it's easy to criticize government institutions, he described the Federal Reserve as "the most qualified group of people" you will ever work with, saying they are dedicated to the public's well-being.

He refused to answer questions about the Justice Department's investigation into the Federal Reserve's renovation of its D.C. headquarters. Prosecutors alleged Powell lied to Congress while testifying last June about the cost of the renovations, which were initially about $1.9 billion before ballooning to at least $2.5 billion.

"I've got nothing for you on that," he told one reporter who asked him about the probe.

Powell was also asked about Fed Governor Lisa Cook's SCOTUS hearing, saying he attended because "that case is perhaps the most important legal case in the Fed's 113-year history." Trump recently tried to fire Cook for alleged mortgage fraud.

Trump has continuously criticized Powell and floated replacing him when his term ends in May. The announcement could come as soon as this week, though it has been delayed before.

"The guy is just incompetent," Trump said of Powell in December. "There is nothing you can do about it. He's just a very incompetent man, but we're probably going to bring a lawsuit against him.

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EDITOR'S NOTE: The Associated Press contributed to this report.