Karla Barker 
The Federal Reserve announced its latest interest rate decision today, keeping rates unchanged as most analysts had expected. This came as no major surprise to markets, but it sets up a key moment later today when Fed Chair Jerome Powell speaks at his press conference scheduled for 21:30 (UTC+3).
Bitcoin’s Initial Reaction
Bitcoin showed a relatively muted response to the news. The cryptocurrency moved slightly lower in the minutes following the announcement but quickly stabilized. Some traders had anticipated a more volatile reaction, but the lack of any policy shift seemed to keep BTC range-bound for now. Short-term US interest rate futures continue to price in a very low probability of a rate cut this year, suggesting that markets do not expect looser monetary policy anytime soon.
Powell’s Uncertain Future
Beyond today’s decision, attention is already shifting to personnel changes at the Fed. Powell is expected to leave office on May 15th, marking the end of an eight-year term that saw him navigate the US economy through the pandemic, high inflation, and considerable political pressure. During this time, the Fed’s decisions played a decisive role in global financial markets. However, one wrinkle remains: while Powell steps down as chair, his term as a board member actually extends until 2028. Technically, he could stay on at the Fed in a lesser role. But experts caution this could create political and institutional controversy, especially given the current climate.
New Chairman on the Horizon
Meanwhile, the process of appointing former Fed official Kevin Warsh as the new chairman has accelerated. Warsh, who was nominated by Donald Trump, received confirmation from the Senate Banking Committee today, moving the process on to the next stage. The final decision now depends on a full Senate vote. This transition could mark a shift in tone for the central bank, though it remains unclear how Warsh’s leadership might differ from Powell’s.
Energy Markets Add Pressure
The period in which the rate decision was announced also saw sharp movements in global energy markets. Ongoing tension between the US and Iran over the Strait of Hormuz pushed oil prices above $119 per barrel. This is significant because rising energy costs could increase inflationary pressure again, narrowing the Fed’s policy space. If inflation stays sticky, it becomes harder for the central bank to cut rates even if economic growth slows.
Overall, today’s decision was expected, but the combination of geopolitical risks, leadership changes, and stubbornly high oil prices means the path forward remains uncertain. All eyes are now on Powell’s press conference for any hints about what comes next.