Jerome Powell, the current Chair of the Federal Reserve, has announced that he will continue to serve on the central bank's board as a Governor after his term expires in May. This decision was revealed during a press conference that followed the Fed's decision to keep interest rates steady at 3.5%-3.75%. Powell expressed concerns about the ongoing legal challenges facing the central bank, stating that these attacks are undermining the institution and jeopardizing its ability to implement monetary policy without political interference. "I am worried that these attacks are damaging the institution and putting at risk the thing that truly matters to the public, which is the ability to conduct monetary policy without considering political factors," 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 Fed's decision to maintain rates steady was not surprising, but the three dissenting voices calling for a halt to any easing guidance caught the market off guard, with Mena saying, "The Fed's decision to keep rates steady wasn't the shocker, but those three dissenters calling for a strike on any easing guidance threw a bucket of ice on the market's pivot party." This 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. Attention is now focused on potential policy changes in the future. According to Mena, "Markets may begin to price a Warsh pivot that favors rate cuts, and more importantly, the imminent passage of the CLARITY Act," adding that if momentum returns, "the path to $85,000–$90,000 looks like a clear shot."