Federal Reserve Chair Jerome Powell says he will stay on as Governor after his term ends in May, explaining that ongoing legal scrutiny and political tensions leave him no choice.
During a press conference following the Fed's decision to hold interest rates at 3.5%-3.75%, Powell expressed concern that attacks on the central bank could undermine its ability to conduct monetary policy free from political influence.
The Trump administration’s criminal investigation into Powell was closed, but U.S. Attorney Jeanine Pirro warned it could be reopened if new facts emerge. Powell stated he had planned to leave but now feels compelled to remain.
The Fed’s rate hold was widely expected, but three dissenting Governors called for removing any easing guidance, a hawkish stance that weighed on risk assets. Bitcoin slipped below $75,000, with traders eyeing a potential retest of $73,000 support.
Attention is now shifting to the next Fed meeting in June, likely led by Kevin Warsh after clearing a Senate Banking Committee vote. Analysts suggest markets may start pricing in a pivot toward rate cuts and the passage of the CLARITY Act, potentially setting the stage for a Bitcoin rally to $85,000-$90,000.