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 shared during a press conference that followed the Fed's decision to keep interest rates steady at 3.5%-3.75%. Powell expressed concerns about the ongoing legal action against the Fed, stating that it has forced him to stay, despite his desire to maintain a low profile. Powell voiced his worries that these attacks are undermining the institution and potentially jeopardizing its ability to implement monetary policy without political interference.
The decision to keep interest rates unchanged was anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The Fed's choice to hold rates steady, combined with the dissenting voices calling for a strike against easing guidance, had a significant impact on the market. The hawkish tone resulted in a decline in risk assets, with bitcoin slipping below the $75,000 support mark.
As the market looks ahead to potential policy changes, analyst Matt Mena suggests that markets may begin to anticipate a pivot favoring rate cuts, particularly with the impending passage of the CLARITY Act. If momentum returns, Mena believes the path to $85,000-$90,000 appears feasible.