BREAKING: The Fed Announces Its Highly Anticipated Interest Rate Decision – Here‘s Bitcoin’s Initial Reaction

The Fed kept interest rates unchanged, as expected.

Now 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 the news as follows:

Short-term US interest rate futures continue to price in a very low probability of a rate cut this year, following the Feds decision to keep rates unchanged.

Powell is expected to leave office on May 15th, and it is noted that during his eight-year term he managed the US economy through challenging conditions such as the pandemic, a period of high inflation, and political pressures. During this time, the Feds decisions played a decisive role in global financial markets.

Meanwhile, the process of appointing former Fed official Kevin Warsh as the new chairman has accelerated. Warsh, nominated by Donald Trump, received confirmation from the Senate Banking Committee today, moving on to the next stage. The final decision is expected to be made by a vote in the Senate.

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The period in which the interest rate decision was announced also saw sharp movements in global energy markets. The ongoing tension between the US and Iran over the Strait of Hormuz pushed oil prices above $119 per barrel. It is stated that rising energy costs could increase inflationary pressure again and narrow the Feds policy space.

One of the most critical issues in the coming period will be whether Powell will remain at the Fed after leaving office. While those who step down from their positions are normally expected to leave the institution, Powells term as a board member extends until 2028. Therefore, although it is technically possible for him to remain in office, experts point out that this could create political and institutional controversy.