US Fed Chair's Top 3 Crypto-Related Comments in Front of Senate Banking Committee
The US Federal Reserve (Fed) Chair Jerome Powell discussed the central bank's COVID-19 response and financial stability, among other issues, during his re-nomination testimony on Tuesday in front of the Senate Banking Committee. He also made several comments that may potentially have an impact on the crypto market -- and here are the top 3 ones.
Senator Sherrod Brown (D-Ohio), the Banking Committee’s chair, started the meeting by praising Powell in his opening remarks. However, he made some stark comments with regard to crypto, calling the industry a "systemic risk" to the economy.
“The Fed needs to take seriously the systemic risks that threaten our economic progress, like cryptocurrencies and stablecoins and most importantly, climate change,” Brown said, adding that crypto bubbles are comparable to risky Wall Street schemes.
Meanwhile, Powell, in his opening remarks, highlighted some of the issues that are currently adversely affecting the economy. He mostly emphasized inflation, saying that the central bank will use "tools to support the economy and a strong labor market and to prevent higher inflation from the entrenched."
However, he noted that,
“We have been and probably remain in an era of very low interest rates,” Powell said, adding that inflation might persist well above the Fed’s target.
This is bullish for risk assets like cryptocurrencies that usually take a hit when the Fed raises (or even announces future plans for the raise of) interest rates.
When asked about the Fed’s much-anticipated digital currency report, Powell claimed that the report will be released within weeks.
"The report really is ready to go and I would expect we will drop it, I hate to say it again, in the coming weeks," he said.
The report is
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