The Federal Reserve Chairman, Jerome Powell, told legislators that the central bank does not prevent Wall Street banks from dealing with encryption. Speaking to the Council’s Financial Services Committee today, Powell dealt with concerns about the financial institutions to cut ties with the encryption companies, a practice known as “fairness”, after talking about it yesterday before the Senate Banking Committee.
“I am also concerned about the amount of these reports,” said Powell. He suggested that banks may back down from encryption due to fears related to the risks associated with the rules of money laundering.
“One of the theories is that the banks are very dangerous.” P. certain The Federal Reserve is already making internal changes. “We are determined to take a new look at it.”
His comments came after many Republican legislators, along with the friendly financial agency appointed by President Donald Trump, the organizational agencies were accused of encouraging banks to cut the encryption industry.
In the session, Powell acknowledged that the Federal Reserve had previously released policies that direct more scrutiny on banks that interact with the controversial sectors. He stressed that these policies were removed.
Powell warns that the price cuts do not come, and inflation still represents a problem
Powell also spent a time in inflation, and the legislators told that although the Federal Reserve has made progress, the task was not accomplished. “I would like to say that we are close, but there is no inflation.” “Last year, inflation was 2.6 % – great progress – but we haven’t been there yet.”
The latest consumer price index (CPI), which was released on the same day, showed the basic inflation – for food and energy – by 0.4 % in January, the largest increase since March. Housing, prescribed drugs, car insurance, and grocery prices rose, with high egg prices.
Keep the first Powell: the rates will remain high. “We want to continue to restrict politics at the present time,” he said. The Federal Reserve reduced the costs of borrowing by a full percentage since September, but Powell made it clear that it stopped. “We do not need to be in a hurry to control our position on politics.”
The market reaction was quickly. The shares opened less, the cabinet revenues rose, and the dollar strengthens. Traders had previously made price cuts this year, but after the consumer price index report, expectations fell to only one.
Trump pays for price discounts, and he evades Powell from political questions
Just two hours before Powell’s certificate, Trump took over the socially required fact for low interest rates, saying they should “walk alongside the upcoming customs tariff.”
When asked about Trump’s comments, avoid direct participation. He told the legislators: “I never comment on anything the president says.” “The American people can be confident that the Federal Reserve will continue to make decisions based on what is happening in the economy.”
Trump recently requested a 25 % tariff on steel and aluminum imports and added 10 % duty to all Chinese goods. It also delayed the new fees on Canadian and Mexican imports with the threat of mutual customs duties on countries that impose taxes on American goods.
Powell said that these changes in politics may affect inflation and economic growth, but he stressed that it is not the task of the Federal Reserve to comment on government trade policy. “The economy can develop in ways that lead us to change interest rates,” Powell said, noting the tariff, immigration, financial policy and organizational changes as possible factors.
Crypto was not now the main focus of the Powell session, but the case appeared several times. In addition to concerns about Debanking, legislators in Stablecoins and Central Bank Digital Currencies (CBDCS).
Powell repeated the position of the Federal Reserve that Stablecoins, associated with assets such as the US dollar, needs appropriate supervision. He said: “Stablecoins may have a great future with consumers and companies.” “We cannot know that now, but it is important to develop Stablecoins – in a safe and sound way that protects consumers and reptiles and all of them – that there is an organizational framework.”
Powell did not provide new details about CBDCS but he repeated that the Federal Reserve would not move forward without the approval of Congress. The central bank is looking for digital dollar, but there is no official plan to launch one.
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