Federal Reserve Chair Jerome Powell has announced that he will remain on the central bank's board as Governor after his term concludes in May. During a press conference after the Fed's decision to keep interest rates steady at 3.5%-3.75%, Powell expressed concerns about ongoing legal challenges and their potential impact on the institution. He stated that these challenges have forced him to stay, despite his intention to maintain a low profile.
Powell voiced his worries that these attacks are undermining the central bank and jeopardizing its ability to implement monetary policy without political influence. The decision to keep interest rates unchanged was expected, but the dissent from three Governors was notable.
According to 21shares macro analyst Matt Mena, the Fed's decision to hold rates steady was not surprising, but the dissenting votes calling for a strike on easing guidance had a significant impact on the market. The hawkish tone has 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 that favors rate cuts and the passage of the CLARITY Act.