Latest Posts

Fed Chair Powell: We’re Not Seeing Significant Macroeconomic Implications From Crypto Sell-Off

- Advertisement -


Federal Reserve Chairman Jerome Powell says the central bank “doesn’t really see a significant macroeconomic impact” of cryptocurrency volatility. The Fed chairman emphasized that there is a need to improve the regulatory system for cryptocurrencies.

Fed Chairman Powell Says Cryptocurrency Needs Better Regulation

- Advertisement -

Federal Reserve Chairman Jerome Powell testified before the Senate Banking, Housing, and Urban Affairs Committee on the “Semi-Annual Monetary Policy Report to Congress” on Wednesday.

- Advertisement -

Senator Kirsten Cinema (D-AZ) asked him if the Fed is monitoring crypto activity given the recent market volatility and what impact crypto has on the broader economic outlook and monetary policy.

- Advertisement -

“Of course, we are monitoring these developments very closely,” Powell replied, elaborating:

[We are] I do not yet see significant macroeconomic consequences.

“The main takeaway is what we have been saying, and others have been saying for some time, which is that there is indeed a need for a better regulatory framework in this very innovative new space,” he stressed.

Powell continued:

The same activity should have the same regulation wherever it appears, and this is not the case now.

In March, the Fed chairman said, “Our existing regulatory framework was not designed with the digital world in mind… Stablecoins, central bank digital currencies, and digital finance in general will require changes to existing laws and regulations, or even entirely new rules and frameworks.”

Powell also told the Senate Banking Committee on Wednesday that the central bank is determined to bring down inflation, which he believes the Fed can do. “At the Fed, we understand the difficulty of high inflation. We are committed to bringing inflation down and we are moving fast towards that,” he said.

Regarding the US economy, which may be sliding into recession, he stressed: “This is not at all our intended outcome, but it is certainly an opportunity, and, frankly, the events of the past few months around the world have made it difficult for us to achieve what we We want that to be 2% inflation and still have a strong job market.”

What do you think of Fed Chairman Powell’s comments? Let us know in the comments below.

Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.



Credit : news.bitcoin.com

- Advertisement -

Latest Posts

Don't Miss