Federal Reserve Chair Jerome Powell has confirmed that he will remain on the central bank's board as Governor after his term concludes in May. This announcement was made during a press conference following 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 attacks are compromising the institution's ability to formulate monetary policy without political interference.
Despite his initial intention to adopt a low profile, Powell feels compelled to stay on, citing the need to protect the Fed from potential risks. The decision to keep interest rates unchanged was widely anticipated, but the dissenting views of three Governors caught attention. According to macro analyst Matt Mena, the Fed's decision to hold rates steady was not surprising, but the dissenting voices calling for a more hawkish stance threw a curveball into the market's expectations.
As a result, risk assets, including bitcoin, experienced a decline. Market focus is now shifting towards potential policy changes, with speculation surrounding the possibility of rate cuts and the passage of the CLARITY Act. If momentum returns, it could pave the way for bitcoin to reach the $85,000-$90,000 range.