Federal Reserve Chair Jerome Powell has announced that he will continue to serve on the central bank's board as a Governor after his term concludes in May. This decision was revealed during a press conference that followed the Fed's decision to keep interest rates steady at 3.5%-3.75%. Powell expressed concerns that ongoing legal challenges and political tensions are compromising the institution and its ability to implement monetary policy without political interference.
'I am concerned that these attacks are undermining the institution and putting at risk the public's ability to have monetary policy conducted without consideration of political factors,' Powell stated. The decision to keep interest rates unchanged was expected, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The hawkish tone had a negative impact on risk assets, including bitcoin, which slipped below the $75,000 support level. Market focus has shifted to potential policy changes, with the possibility of rate cuts and the passage of the CLARITY Act being closely watched.