Federal Reserve Chair Jerome Powell has announced his intention to remain on the central bank's board as Governor after his term concludes in May. This decision was shared 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 action against the central bank, stating that it has forced him to stay on, despite his initial plans to adopt a low profile. Powell emphasized the potential risks to the institution and the ability to conduct monetary policy without political influence. The decision to keep rates unchanged was expected, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The market reaction was significant, with risk assets, including bitcoin, being affected.
The focus is now on potential policy changes, including the possibility of rate cuts and the passage of the CLARITY Act, which could impact market momentum and the path forward for bitcoin.