Federal Reserve Chair Jerome Powell has announced his intention to continue serving on the central bank's board as Governor beyond the end of his term in May. During a press conference after 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 compelling him to stay, despite his initial plans to maintain a low profile.
"These attacks are undermining the institution and jeopardizing its ability to implement monetary policy without considering 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, with bitcoin prices slipping below the $75,000 support level. Attention is now focused on potential future policy changes, with markets potentially pricing in a pivot towards rate cuts and the imminent passage of the CLARITY Act.