We’re not seeing major macroeconomic fallout from selling cryptocurrency – Bitcoin News Regulatory

Federal Reserve Chairman Jerome Powell says the central bank is “not really seeing significant macroeconomic impacts” from cryptocurrency volatility. The Federal Reserve Chairman stressed that a better regulatory framework for cryptocurrency is needed.

Fed Chairman Powell says crypto needs better regulation

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

Senator Kirsten Senema (D-AZ) asked him if the Fed has been tracking crypto activity given recent market volatility, and what the implications of cryptocurrency for the broader economic outlook and monetary policy are.

“We are following these events very carefully, of course,” Powell replied, explaining:

[We are] I don’t actually see significant macroeconomic effects, yet.

“The underlying meaning is what we’ve really said, and what others have said some time ago, which is that in this very innovative new space, there is really a need for a better regulatory framework,” he stressed.

Follow Powell:

The activity itself must have the same organization regardless of where it appears and this is not the case now.

In March, the Fed chief said, “Our current regulatory frameworks are not built with the digital world in mind… Stable currencies, central bank digital currencies, and digital finance in general will require changes to existing laws and regulations or even completely new rules and business frameworks.” .”

Powell also told the Senate Banking Committee on Wednesday that the central bank is determined to bring down the inflation he believes the Fed can make. At the Fed, we understand the difficulties that high inflation causes. We are deeply committed to bringing inflation back down, and we are moving quickly to do so.

Regarding the possibility of the US economy sliding into recession, he stressed: “It is not the intended result at all, but it is certainly a possibility, and frankly, the events that have occurred in the past few months around the world have made it difficult for us to achieve what we want, which is 2% inflation and still a job market. strong.”

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

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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