Federal Reserve Chair Jerome Powell has announced his decision to remain on the central bank's board as Governor after his term concludes in May. This revelation came during a press conference that followed the Fed's decision 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 on, despite his intention to maintain a low profile. "The ongoing attacks on the institution are undermining its ability to implement monetary policy without political interference, which is a critical concern for 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. The hawkish tone had a negative impact on risk assets, with bitcoin slipping below the $75,000 support level as traders prepare for a potential retest of the $73,000 level.
Market focus has shifted to potential policy changes, with analyst Matt Mena suggesting that markets may begin to factor in the possibility of rate cuts and the passage of the CLARITY Act, which could pave the way for a potential price surge to $85,000-$90,000.