Powell reaffirms prudent position on rates and supports greater opening of the Fed to the crypto sector

According to Powell, the Fed It will maintain its prudent approach in monetary policy while increasing regulatory interest in digital assets, maintaining that banks can offer services to the crypto sector as long as they keep the risks under control.

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• Jerome Powell reaffirms that there is no hurry to lower rates, despite internal and political pressures.
  
• Recognize positive change in the attitude of the banking sector towards cryptocurrencies.
  
• Support legislative advances to regulate stablecoins and digital assets.

The president of the US Federal Reserve. (Fed), Jerome Powell reiterated that the Central Bank has no urgency in modifying its current monetary policy, that is, to reduce interest rates.

During his semiannual appearance before the Congress, reviewed by COINDESK, Powell argued that “The economy is in a good position” And that, for the moment, “We are well positioned to wait and learn more about the probable trajectory of the economy before considering adjustments in our position”.

These statements maintain the line of their previous interventions, in which he has opted for a prudent position in front of the calls to monetary flexibility. This contrasts with the position of the US president, Donald Trump, who has repeatedly insisted on the need for the Fed Flexible the current measures.

Internal tensions and political pressures

The statement becomes relevant in the midst of recent differences that have been presented within it Federal Open Market Committee (FOMC). This week, the governors of the Fed, Chris Waller and Michelle Bowman, They indicated that they would support a rate cut at the next meeting of the agency.

However, Powell has not given concrete indications of leaning towards that option. At the last FOMC meeting, the Fed chose to keep interest rates without changes.

According to the meter Cme fedwatch, The probabilities of a rate cut in July are just 18.6%. However, for September, markets estimate a probability of more than 80% of one or more cuts.

Declarations regarding the crypto sector

Although Crypto issues did not dominate the audience, Powell was questioned several times about the growing interest of US banking in digital assets.

In response, he said “A very significant change in the tone”which suggests a possible future increase in the activity related to digital assets, in line with the evolution of the industry and its regulatory perception.

Faced with accusations that the agency had discouraged banks to interact with cryptocurrencies, Powell clarified that “Banks decide who their clients are”. He also added that they are “free to perform activities related to cryptocurrencies, provided they do it safely and solidly. ”

The president of the Fed He also expressed his support for legislative efforts in the Congress to establish a clear regulatory framework for digital assets and stablecoins.

“I think it is positive that the bills are advancing,” Powell said. “We need it. We need a frame for stablecoins.”

This explicit support for legislative progress marks a relevant change in the institutional approach to the crypto ecosystem, which for years has operated under considerable normative uncertainty in the United States.

The weight of the measures of the Fed

Powell’s intervention shows the growing influence of cryptocurrencies on the country’s financial agenda, while reflecting a monetary strategy still marked by caution.

While the markets await clarity on future rates decisions, the recognition of digital assets as part of the financial system begins to consolidate at regulatory and institutional level.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, freely used, licensed under public domain

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