Federal Reserve Chair Jerome Powell has announced his intention to remain on the central bank's board as Governor beyond his current term, citing concerns over the institution's independence and the potential risks of political interference in monetary policy. During a recent press conference, Powell expressed worries that ongoing legal challenges and political tensions could compromise the Fed's ability to make decisions without external influence. His decision to stay on comes despite initial plans to adopt a lower profile after his term ends in May.
The situation has been complicated by the possibility of renewed legal action, with the matter remaining under review by the Fed's inspector general. This development, combined with statements from President Donald Trump and his administration, has raised concerns about potential legal pressure on Powell. In a related development, the Fed's decision to maintain interest rates has been met with a mixed reaction, with some analysts noting the significance of dissenting voices among the Governors. According to macro analyst Matt Mena, the hawkish tone adopted by the Fed has had a cooling effect on risk assets, including bitcoin, which has slipped below the $75,000 support level.
Looking ahead, markets are shifting their focus towards potential policy changes, including the possibility of rate cuts and the passage of the CLARITY Act. If momentum returns, Mena believes that the path to $85,000-$90,000 for bitcoin could become more viable.