Jerome Powell, the current Chair of the Federal Reserve, has announced that he will continue to serve on the central bank's board as a Governor after his term concludes in May. This revelation came during a press conference that followed the Fed's decision to maintain interest rates at 3.5%-3.75%.
Powell expressed concerns over the ongoing legal challenges facing the central bank, stating that these have compelled him to remain in his position despite his intention to adopt a lower profile. "The relentless attacks on the institution jeopardize its ability to implement monetary policy without political interference, which is of paramount importance to the public," Powell stated. The decision to keep interest rates unchanged was widely anticipated, but the dissent from three Governors was notable.
According to Matt Mena, a macro analyst at 21shares, "The Fed's decision to hold rates steady was not surprising, but the dissent from three Governors calling for a more hawkish stance caught the market off guard, dampening the optimism surrounding a potential policy pivot." The hawkish tone had a negative impact on risk assets, with bitcoin prices slipping below the $75,000 support level. Market focus has shifted towards potential policy changes, with Mena suggesting that "markets may start to factor in the possibility of a pivot under Kevin Warsh that could lead to rate cuts, as well as the impending passage of the CLARITY Act.
If momentum returns, the path to $85,000-$90,000 appears feasible."