Federal Reserve Chair Jerome Powell has announced his intention to remain on the central bank's board as Governor beyond his term's expiration in May. This decision was revealed during a press conference after the Fed opted to keep interest rates steady 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 adopt a lower profile. "I am concerned that these attacks are undermining the institution and jeopardizing its ability to implement monetary policy without political interference," Powell stated.
The decision to keep rates unchanged was anticipated, but the dissent from three Governors caught attention, with analyst Matt Mena noting that the surprise came from the dissenters pushing for a more hawkish stance, which led to a negative impact on risk assets, including bitcoin. As the focus shifts to potential future policy adjustments, analyst Mena suggested that markets may start pricing in 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.