Federal Reserve Chair Jerome Powell has announced his intention to continue serving on the central bank's board as Governor after his term concludes in May. This decision was revealed during a press conference that followed the Fed's choice to keep interest rates steady at 3.5%-3.75%. Powell expressed concerns over the legal challenges facing the central bank, stating that these pressures have compelled him to stay, despite his original plan to adopt a lower profile.
"The ongoing attacks on the institution risk undermining its ability to implement monetary policy without political interference, which is of utmost 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 macro analyst Matt Mena. "While the Fed's decision to hold rates steady was not surprising, the dissenting voices calling for a tougher stance on easing guidance had a significant impact on the market," Mena observed.
The hawkish tone had a negative effect on risk assets, including bitcoin, which slipped below the $75,000 support level as traders prepare for a potential retest of the $73,000 mark. Looking ahead, focus is shifting towards potential policy changes, with Mena noting that markets may start to factor in the possibility of rate cuts and the impending passage of the CLARITY Act.
If momentum returns, Mena believes the path to $85,000-$90,000 could become a viable option.