Federal Reserve Chair Jerome Powell has revealed plans to continue serving on the central bank's board as a Governor beyond the end of his term in May. This decision was disclosed during a press conference following the Fed's decision to maintain interest rates at 3.5%-3.75%. Powell cited ongoing legal challenges and political pressures as the reason for his change of heart, expressing concerns that these attacks could compromise the bank's ability to implement monetary policy without political interference. Despite his preference to maintain a low profile, Powell stated that he had no choice but to remain in his position.
The Federal Reserve's decision to hold interest rates steady was widely anticipated, but the dissenting votes from three Governors caught attention. According to macro analyst Matt Mena, the Fed's decision to keep rates unchanged was not surprising, but the dissenting voices calling for a halt to 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 level.
Looking ahead, focus is shifting towards potential policy changes, with markets potentially pricing in a pivot favoring rate cuts and the passage of the CLARITY Act. If momentum returns, the path to $85,000-$90,000 appears feasible.