Federal Reserve Chairman Jerome Powell has confirmed that he will remain on the central bank's board as a Governor after his term expires in May. This decision was disclosed during a press conference that followed the Fed's decision to maintain interest rates at 3.5%-3.75%. Powell expressed concerns that the ongoing legal challenges and intense political scrutiny facing the central bank have forced him to reconsider his initial plan to step down. Despite his intention to maintain a low profile, Powell emphasized the need to protect the institution from potential risks to its ability to conduct monetary policy independently.
The decision to keep interest rates unchanged was widely anticipated, but the dissenting views of three Governors drew attention, according to macro analyst Matt Mena. The market reaction was notable, with risk assets, including bitcoin, experiencing a decline as traders prepare for potential further declines.
Looking ahead, market focus is shifting towards potential policy changes, including the possibility of rate cuts and the passage of the CLARITY Act, which could significantly impact market trends and potentially pave the way for bitcoin to reach the $85,000-$90,000 range.