Powell made the announcement at a press conference following the Fed's decision to hold its benchmark interest rate steady at 3.5% to 3.75%
Crypto News
Federal Reserve Chair Jerome Powell said on April 29 that he will remain on the central bank's board as a governor after his term as chair ends in May. He cited mounting legal and political pressure on the institution as his reason for staying rather than stepping down entirely.
Powell made the announcement at a press conference following the Fed's decision to hold its benchmark interest rate steady at 3.5% to 3.75%. He said he had planned to keep a low profile after his chairmanship ended but felt he had "no choice" but to remain. "I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into consideration political factors," Powell said.
A criminal investigation into Powell was closed by the current administration, but the US attorney for the District of Columbia, Jeanine Pirro, said the matter would remain under review by the Fed's inspector general. Pirro said prosecutors could reopen the case if new facts emerged. Those statements, along with subsequent remarks from administration officials, left open the possibility of continued legal pressure on Powell.
3 Fed Governors Dissent on Rate Guidance
The rate decision itself was widely expected, but three Fed governors dissented by calling for the removal of any forward guidance on easing. Matt Mena, macro analyst at 21Shares, said the dissent caught markets off guard. "The Fed's decision to keep rates steady wasn't the shocker, but those three dissenters calling for a strike on any easing guidance threw a bucket of ice on the market's pivot party," Mena said.
Bitcoin (BTC) slipped below the $75,000 level after the announcement as traders responded to the hawkish tone from the dissenters. Mena identified $73,000 as the next level being watched for a potential retest. The price move reflected broader selling pressure on risk assets following signals that rate cuts are not imminent.
Analysts have begun factoring in a possible FederalReserve leadership transition and the potential passage of the CLARITY Act as variables that could shift the rate outlook. Mena said that if momentum returns, the path to $85,000 to $90,000 for BTC "looks like a clear shot," contingent on a shift toward easing under new Fed leadership.
Powell's decision to stay as a voting board member rather than exit the institution is uncommon. Fed chairs who do not seek reappointment have typically left the board when their term as chair concludes. His choice to remain signals an intent to maintain a presence during what he described as a critical period for monetary policy independence.
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