The Fed left interest rates unchanged as expected.
All eyes will be on what Federal Reserve Chairman Jerome Powell will say at his press conference at 21:30 (UTC+3).
Bitcoin reacted to this news as follows.
Following the Fed’s decision to keep interest rates on hold, U.S. short-term interest rate futures continue to predict that the probability of a rate cut this year is extremely low.
Powell, who is scheduled to retire from office on May 15, is notable for steering the U.S. economy through difficult circumstances during his eight years in office, including a pandemic, a period of high inflation, and political pressure. During this time, the Fed’s decisions played a decisive role in global financial markets.
Meanwhile, the process to appoint former Fed official Kevin Warsh as the new chairman is accelerating. Mr. Warsh, nominated by Donald Trump, was approved by the Senate Banking Committee today, moving forward to the next step. The final decision will be taken by a vote in the Senate.
Related news Only a few left: Fed to announce interest rate decision – here’s the latest forecast
The period in which interest rate decisions were announced also saw sharp movements in global energy markets. Tensions between the US and Iran over the Strait of Hormuz continue, with oil prices exceeding $119 per barrel. Rising energy costs could reignite inflationary pressures and reduce the Fed’s policy space.
One of the most important questions going forward will be whether Mr. Powell will remain at the Fed after he leaves office. People who resign from their positions are typically expected to leave the institution, but Mr. Powell’s term on the board has been extended until 2028, so he could technically continue, but experts say this could spark political and institutional controversy.
*This is not investment advice.
