Federal Reserve Chair Jerome Powell has announced that he will continue to serve on the central bank's board as Governor after his term concludes in May. This decision was disclosed during a press conference that followed the Fed's decision to keep interest rates steady at 3.5%-3.75%.
Powell expressed concerns over the ongoing legal actions against the central bank, stating that these challenges have compelled him to remain in his position, despite his intention to maintain a low profile. Powell stated, "I am concerned that these attacks are undermining the institution and jeopardizing the public's 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 Fed's choice to hold rates steady, combined with the hawkish tone, has negatively impacted risk assets, including bitcoin, which has fallen below the $75,000 support level.
Market focus has shifted towards potential policy changes, with the possibility of rate cuts and the impending passage of the CLARITY Act. If momentum returns, the path to $85,000-$90,000 appears feasible, according to Mena.