Federal Reserve Chairman Jerome Powell has announced that he will continue to serve on the central bank's board as Governor after his term expires in May. This decision was revealed during a press conference held after the Fed's decision to keep interest rates steady at 3.5%-3.75%. Powell expressed concerns about the ongoing legal action against the central bank, stating that it has forced him to reconsider his initial plans to step down and instead maintain a low profile. Powell noted that the attacks on the institution are jeopardizing its ability to implement monetary policy without political interference.
The decision to keep interest rates unchanged was expected, but the dissent from three Governors was notable. According to analyst Matt Mena, the Fed's decision to hold rates steady was not surprising, but the dissenting votes calling for a change in easing guidance had a significant impact on the market.
The hawkish tone affected risk assets, with bitcoin prices slipping below the $75,000 support level. Attention has shifted to potential policy changes, with markets potentially pricing in a pivot favoring rate cuts and the passage of the CLARITY Act.