Federal Reserve Chair Jerome Powell has revealed that he will continue to serve on the central bank's board as a Governor after his term expires in May. This decision was made public 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 pressures have forced him to reconsider his initial plan to step down. Despite his desire to maintain a low profile, Powell feels compelled to stay on due to the potential risks these legal actions pose to the institution and its ability to conduct monetary policy without political interference.
The situation arose from a criminal investigation into Powell, which was closed by the Trump administration but left open the possibility of being revisited. Recent statements from President Trump and his aides have heightened concerns that Powell may still face legal repercussions, leaving him with "no choice" but to remain in his position. The Fed's decision to hold interest rates steady was widely anticipated, but the dissent from three Governors was notable.
According to macro analyst Matt Mena, the hawkish tone adopted by the Fed has impacted risk assets, including bitcoin, which has fallen below the $75,000 support level. Looking ahead, markets are focusing on potential policy shifts, including the possibility of rate cuts and the passage of the CLARITY Act, which could pave the way for bitcoin to reach $85,000-$90,000.