Current Federal Reserve Chairman Jerome Powell will remain on the central bank’s board as governor after his term ends in May.
At a news conference following the central bank’s decision to keep interest rates steady at 3.5% to 3.75% on Wednesday, Powell expressed concern about the legal action against the central bank, saying it is causing him to stay put, although he plans to keep a “low profile.”
“I am concerned that these attacks are hitting the institution and putting at risk what the public really cares about, which is the ability to conduct monetary policy without regard to political factors,” Powell said.
When President Donald Trump’s administration closed its criminal investigation into Powell, it left room to review the case. Jeanine Pirro, U.S. attorney for the District of Columbia, said the matter would remain under review by the Federal Reserve’s inspector general and warned that prosecutors could reopen it if new facts emerged.
That statement, along with subsequent comments from President Donald Trump and his aides, raised concerns that Powell could still face legal pressure. Powell said that although he wanted to leave, he had “no choice” but to stay.
Fed leaves rates unchanged
The Federal Reserve’s rate hold came as expected, but highlighted the dissent of three governors, according to 21shares macroeconomic analyst Matt Mena. “The Federal Reserve’s decision to keep rates stable was not a surprise, but those three dissidents who called for a strike against any easing guidance threw an ice bucket on the market’s pivotal party,” Mena said. The hawkish tone weighed on risk assets, with bitcoin falling below the $75,000 support mark as traders prepare for a retest of the $73,000 level.
Attention has also shifted to potential policy changes ahead. “Markets can begin to set the price of a [Kevin] “A shift that favors rate cuts and, more importantly, the imminent passage of the CLARITY Act,” Mena said, adding that if momentum returns, “the path toward $85,000-$90,000 seems a clear option.”
