Federal Reserve Chairman Jerome Powell has confirmed that he will remain on the central bank's board as Governor after his term expires in May. This decision was made during a press conference after the Fed opted to keep interest rates steady at 3.5%-3.75%.
Powell expressed concerns about the legal challenges facing the central bank, stating that these attacks are undermining the institution and jeopardizing its ability to implement monetary policy without political interference. Despite initially planning to adopt a low profile, Powell feels compelled to stay on due to the ongoing legal pressures. The Fed's decision to hold interest rates was widely anticipated, but the dissent from three Governors was notable. According to macro analyst Matt Mena, the dissenting voices calling for a strike on any easing guidance had a significant impact on the market.
The hawkish tone has affected risk assets, with bitcoin slipping below the $75,000 support mark. Looking ahead, markets are focusing on potential policy changes, including the possibility of rate cuts and the passage of the CLARITY Act.