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 decision was disclosed during a press conference following the Fed's decision to maintain interest rates at 3.5%-3.75%.
Powell expressed concerns over ongoing legal challenges and their potential impact on the institution, forcing him to reconsider his initial plan to step down and instead maintain a low profile. Powell stated, "I am concerned that these ongoing attacks are undermining the institution and jeopardizing its ability to implement monetary policy without political interference." The decision to keep interest rates unchanged was 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, including bitcoin, which fell below the $75,000 support level.
Looking ahead, markets are focusing on potential policy shifts, 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.