Federal Reserve Chairman Jerome Powell has revealed that he will continue to serve on the central bank's board of governors after his term expires in May. This decision comes amid a press conference where the Fed announced its decision to maintain interest rates at 3.5%-3.75%.
Powell expressed concerns over the ongoing legal action against the Fed, stating that it has forced him to reconsider his initial plan to step down and instead maintain a low profile. Powell emphasized that the relentless attacks on the institution jeopardize its ability to implement monetary policy without political interference.
The decision to stay on follows the conclusion of a criminal investigation into Powell by the Trump administration, which left the door open for potential revisitation. Powell acknowledged that despite his desire to leave, he feels compelled to remain in his position due to the uncertain legal landscape.
The Fed's decision to hold interest rates steady was anticipated, but the dissent from three governors caught attention. According to macro analyst Matt Mena, the hawkish tone adopted by the Fed has had a cooling effect on risk assets, including bitcoin, which slipped below the $75,000 support level. Market focus is now shifting towards potential policy changes, with some anticipating a pivot favoring rate cuts and the passage of the CLARITY Act, which could potentially pave the way for bitcoin to reach $85,000-$90,000.