Federal Reserve Chairman Jerome Powell has revealed plans to continue serving on the central bank's board as a Governor after his term concludes in May. This decision was announced during a press conference that followed the Fed's decision to keep interest rates steady at 3.5%-3.75%. Powell expressed concerns over the impact of legal action on the institution, stating that these challenges are compelling him to remain, despite his initial intention to adopt a lower profile. Powell stated, "I am concerned that these attacks are undermining the institution and potentially jeopardizing its ability to implement monetary policy without political interference." The decision to keep interest rates unchanged was widely anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena.
Mena observed, "While the Fed's decision to hold rates steady was expected, the dissent from three Governors calling for a more hawkish stance caught the market off guard, pouring cold water on the expectation of easing guidance." This hawkish tone has had a negative impact on risk assets, with bitcoin prices slipping below the $75,000 support level as traders prepare for a potential retest of the $73,000 mark. Attention is now focused on potential future policy adjustments. Mena noted, "The market may begin to factor in the possibility of a pivot towards rate cuts, as well as the impending passage of the CLARITY Act." If momentum returns, Mena believes that a price target of $85,000-$90,000 appears achievable.