Federal Reserve Chair Jerome Powell has revealed that he will continue to serve on the central bank's board as Governor after his term concludes in May. This announcement came during a press conference held after the Fed decided to maintain interest rates at 3.5%-3.75%. Powell expressed concerns over ongoing legal actions against the central bank, stating that these actions have forced him to stay on despite his initial plans to adopt a low profile. "The relentless attacks on the institution are undermining its ability to implement monetary policy without political interference, which is crucial for the public," Powell stated.
The decision to keep interest rates steady was anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The Fed's decision to hold rates steady was not surprising, but the three dissenters' call for a strike on any easing guidance had a significant impact on the market. The hawkish tone affected risk assets, with bitcoin slipping below the $75,000 support mark as traders prepare for a potential retest of the $73,000 level. Attention has now shifted to potential policy changes, with markets potentially pricing in a pivot favoring rate cuts and the imminent passage of the CLARITY Act.
If momentum returns, the path to $85,000-$90,000 appears achievable, according to Mena.