Federal Reserve Chair Jerome Powell has confirmed that he will continue to serve on the central bank's board of governors after his term expires in May. This announcement was made during a press conference that followed the Federal Reserve's decision to maintain interest rates at 3.5%-3.75%. Powell expressed concerns about the ongoing legal challenges facing the central bank and stated that these pressures have forced him to reconsider his initial plans to step down. Despite his desire to maintain a low profile, Powell emphasized that he has no choice but to stay on due to the potential risks these legal actions pose to the institution's ability to conduct monetary policy independently of political factors.
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 adopted by the Fed has had a significant impact on risk assets, with bitcoin prices slipping below the $75,000 support level. Looking ahead, markets are focusing on potential 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.