Federal Reserve Chair Jerome Powell has confirmed he will continue serving on the central bank's board as a Governor after his term expires in May. This announcement was made during a press conference that followed the Fed's decision to maintain interest rates at 3.5%-3.75%. Powell expressed concerns over the ongoing legal challenges facing the central bank, stating that these pressures have compelled him to remain in his position, despite his intention to maintain a low profile.
"The relentless attacks on the institution are undermining its ability to implement monetary policy without being swayed by political considerations, which is of paramount importance to the public," Powell stated. The decision to keep interest rates steady was widely anticipated, but the dissent from three Governors was notable, according to macro analyst Matt Mena.
"The surprise was not the Fed's decision to hold rates steady, but the dissenting voices calling for a halt to any easing guidance, which poured cold water on the market's expectations of a pivot," Mena said. The hawkish tone had a negative impact on risk assets, with bitcoin slipping below the $75,000 support level as traders prepare for a potential retest of the $73,000 level.
Attention is now focused on potential future policy shifts. "The market may start pricing in a pivot favoring rate cuts, particularly with the impending passage of the CLARITY Act, and if momentum picks up, the path to $85,000-$90,000 appears straightforward," Mena added.