Federal Reserve Chair Jerome Powell has confirmed that he will continue to serve on the central bank's board as a Governor after his term concludes in May. This announcement came during a press conference where the Fed decided to maintain interest rates at 3.5%-3.75%. Powell expressed concerns over the legal challenges facing the central bank, stating that they compelled him to remain in his position despite his intention to adopt a lower profile.
"The relentless attacks on the institution are jeopardizing its ability to implement monetary policy without political interference, which is of utmost importance to the public," Powell stated. The decision to keep interest rates steady was anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena. The Fed's choice to maintain rates steady was not surprising, but the hawkish tone from the dissenting Governors had a significant impact on the market. Bitcoin prices slipped below the $75,000 support level as traders prepared for a potential retest of the $73,000 level.
Attention has shifted towards potential policy changes, with markets potentially pricing in the likelihood of rate cuts and the passage of the CLARITY Act. If momentum returns, the path to reaching $85,000-$90,000 appears feasible, Mena noted.