Federal Reserve Chair Jerome Powell has announced that he will remain on the central bank's board as Governor after his term concludes in May. This decision was made during a press conference after the Fed chose to maintain interest rates at 3.5%-3.75%. Powell expressed concerns about the ongoing legal action against the central bank, stating that it has forced him to stay despite his initial plans to step down and maintain a low profile.
"The attacks on the institution are undermining its ability to conduct monetary policy without considering political factors, which is crucial for the public," Powell stated. The decision to keep rates unchanged was expected, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The hawkish tone had a negative impact on risk assets, with bitcoin prices slipping below the $75,000 support mark.
Attention is now focused on potential policy changes, with markets possibly pricing in a pivot that favors rate cuts and the passage of the CLARITY Act. If momentum returns, the path to $85,000-$90,000 appears achievable, according to Mena.