Despite his term ending in May, Federal Reserve Chair Jerome Powell will continue to serve on the central bank's board of governors. In a press conference after the Fed decided to keep interest rates steady at 3.5%-3.75%, Powell expressed concerns over the ongoing legal challenges facing the central bank, stating that these pressures have forced him to stay on, although he intended to maintain a low profile.
Powell emphasized that the attacks on the institution jeopardize its ability to implement monetary policy without political interference. The decision to keep rates unchanged was expected, but the dissent from three governors was notable, according to analyst Matt Mena.
The market reacted to the hawkish tone, with bitcoin prices slipping below $75,000. Attention has shifted to potential future policy changes, including the possibility of rate cuts and the passage of the CLARITY Act, which could potentially drive bitcoin prices towards $85,000-$90,000.