Although Jerome Powell, the chairman of the American Federal Reserve (FED), will end his term as chairman in May, he will continue to be on the board of directors of the central bank. Powell, who stands out with his important decisions in the history of the FED, has been in a decisive position in US monetary policy for years.
Powell’s Term of Office and Legal Developments
While it was announced that Powell would continue his duty in a low-profile manner in the new term, it was noted that legal debates and political pressures played a role. The official closure of the criminal investigation initiated during the administration of former US President Donald Trump, but the fact that the file could be reopened at any time, increased the uncertainty over the president.
US District Attorney for Washington, Jeanine Pirro, said in a statement that the FED’s inspection unit will continue to monitor the issue and that the case may be brought to the agenda again if new evidence emerges. Powell, on the other hand, stated that he wanted to resign, but that it was not possible for him to leave the office under the current conditions.
Powell emphasized that the attacks damaged the reputation of the institution and that the most important thing is to carry out a monetary policy free from political influences.
Interest Rate Decision and Market Reaction
At the meeting held on Wednesday, the FED kept the interest rate constant in the 3.5-3.75 percent band. Although the decision was in line with the general expectation, it was noteworthy that three FED managers expressed different opinions and opposed the interest rate cut expectation.
Macroeconomics analyst Matt Mena stated that the statements of the three managers weakened the recovery expectations in the market. “The FED’s interest rate decision itself did not surprise the market, but the fact that three people opposed the easing signal disrupted the entire climate,” Mena said.
This pessimistic atmosphere in the market brought selling pressure to risky assets. Fluctuation has accelerated, especially in cryptocurrencies. As Bitcoin fell below the critical $75,000 level, a decrease in transaction volume was observed. CryptoAppsy According to data, Bitcoin price fell below $ 75,000 for a short time after these statements. Analysts point out the $73,000 level as the next strong support area.
Dynamics of Markets and Future Expectations
After the FED kept interest rates constant, investors started to focus on possible new policy steps. Economist Matt Mena noted that the influence of different names may be felt in the market in the near future, and especially the prominence of Kevin Warsh may create expectations for lower interest rates.
It is also said that the CLARITY Law, which is expected to come into force soon, may increase the risk appetite in the markets again. If current conditions continue, it is predicted that upward movements in Bitcoin may accelerate again and the price may approach the $ 85,000-90,000 band.
In summary, while the FED’s latest decisions deeply affect both traditional markets and crypto assets, Powell’s continued duty and ongoing legal pressures on the institution continue to create uncertainty in the near term.
