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 disclosed during a press conference that followed the Fed's choice to keep interest rates steady at 3.5%-3.75%.
Powell expressed concerns that ongoing legal challenges and political tensions are forcing him to stay, despite his preference for a lower profile. "These attacks are undermining the institution and jeopardizing its ability to implement monetary policy without political influence," Powell stated. The decision to keep rates unchanged was anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The Fed's decision had a cooling effect on risk assets, with bitcoin slipping below the $75,000 support level.
Looking ahead, markets may start to anticipate policy shifts, including potential rate cuts and the passage of the CLARITY Act, which could pave the way for bitcoin to reach $85,000-$90,000.