Federal Reserve Chair Jerome Powell has announced his intention to remain on the central bank's board as Governor beyond his current term, which is set to expire in May. This decision was disclosed during a press conference that followed the Fed's decision to maintain interest rates at 3.5%-3.75%.
Powell expressed concerns that ongoing legal challenges and political pressures are undermining the institution and potentially jeopardizing its ability to implement monetary policy without political interference. "The relentless attacks on the central bank pose a significant risk to its independence and effectiveness in conducting monetary policy," Powell stated. The decision to keep interest rates steady was largely anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena.
The Fed's hawkish stance has had a negative impact on risk assets, including bitcoin, which has fallen below the $75,000 support level. Market attention is now focused on potential future policy changes, including the possibility of rate cuts and the passage of the CLARITY Act, which could potentially pave the way for bitcoin to reach $85,000-$90,000.