Federal Reserve Chair Jerome Powell has announced his intention to remain on the central bank's board as Governor following the end of his term in May. This decision was made public during a press conference after the Fed opted to maintain interest rates at 3.5%-3.75%. Powell expressed concerns over ongoing legal challenges facing the central bank, stating that these issues have forced him to stay, despite his desire to maintain a low profile. Powell's decision comes after the Trump administration closed a criminal investigation into him, leaving the possibility for the case to be revisited.
Recent statements from President Trump and his aides have raised concerns that Powell may still face legal pressure, prompting him to assert that he has "no choice" but to stay. The Fed's decision to hold interest rates steady was widely anticipated, but the dissent from three Governors was notable. According to analyst Matt Mena, the dissenters' call 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. Attention is now focused on potential future policy changes, including the possibility of rate cuts and the passage of the CLARITY Act, which could potentially lead to a surge in momentum and a path to $85,000–$90,000 for bitcoin.