Current Fed Chairman Jerome Powell will remain on the Fed’s board as governor after his term ends in May.
At a news conference on Wednesday after the central bank decided to hold interest rates steady at 3.5%-3.75%, Powell expressed concerns about legal action against the central bank, saying this led him to stay despite his plan to keep a “low profile.”
“I’m concerned that these attacks are damaging to the agency and putting at risk what really matters to the public, which is the ability to conduct monetary policy without regard to political considerations,” Powell said.
When President Donald Trump’s administration ended its criminal investigation into Powell, it left room to reexamine the case. Jeanine Pirro, the U.S. attorney for the District of Columbia, said the matter would remain under review by the Fed’s inspector general and warned that prosecutors could reopen the case if new facts emerge.
That statement and subsequent comments from President Donald Trump and his aides raised concerns that Powell could still face legal pressure. Powell said that while he wanted to leave, he had “no choice” but to stay.
Fed keeps interest rates unchanged
21shares macro analyst Matt Mena said the Fed’s decision to keep interest rates unchanged was in line with expectations, but the objections of three governors stood out. Mena said: “The Fed’s decision to keep interest rates steady is not shocking, but these three opponents called for a strike against any loose guidance, which dealt a heavy blow to the key parties in the market.” The hawkish tone suppressed risk assets, among which Bitcoin There was a break below the $75,000 support as traders prepared to retest the $73,000 level.
Focus also turns to potential future policy changes. “The market may start to price in [Kevin] Warsh’s pivot favors rate cuts and, more importantly, the impending passage of the CLARITY Act,” Mena said, adding that if momentum resumes, “the path to $85,000 to $90,000 looks clear. “
