Federal Reserve Chair Jerome Powell has announced his intention to continue serving 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 a steady 3.5%-3.75% on Wednesday. Powell expressed concerns that ongoing legal challenges against the central bank are compelling him to stay, despite his initial plan to adopt a lower profile. "The relentless attacks on the institution pose a significant risk to its ability to implement monetary policy without being swayed by political considerations," Powell stated.
The decision to keep interest rates unchanged was widely anticipated, but the dissenting views of three Governors caught attention, according to macro analyst Matt Mena. "While the Fed's decision to hold rates steady was not surprising, the dissenting voices calling for a more hawkish stance did send a chill through the markets," Mena noted. As a result, risk assets, including bitcoin, experienced a decline, with the cryptocurrency slipping below the $75,000 support level. Looking ahead, markets are shifting their focus towards potential policy changes, with Mena suggesting that the prospect of rate cuts and the passage of the CLARITY Act could lead to a significant price increase for bitcoin, potentially reaching $85,000-$90,000.