Is the Federal Reserve not allowed to own Bitcoin?

The Federal Reserve's December monetary policy meeting concluded as scheduled. The result met market expectations, continuing to cut interest rates by 25 basis points. This outcome was beyond the previous speculation of some that interest rate cuts would stop. Since the second half of 2024, the Federal Reserve has cumulatively cut rates three times, with a total decrease of 100 basis points, or 1%, bringing the U.S. federal interest rate down from 5.5% to 4.5%. This has returned the rate to the level at the beginning of 2023.

Following the rate cut, the three major U.S. stock indices and the cryptocurrency market all experienced a sharp correction. Why? Because the anticipated rate cut had already been priced in by the market. This resulted in the good news turning into bad news, with the mountains still standing as the sun sets multiple times. Of course, the reason for the correction is also related to the Federal Reserve Chairman's statement that next year's policy adjustments might be more cautious, which contrasts with the aggressive expectations of some in the market for continued rapid rate cuts next year. After all, in this period of global radicalism and economic downturn, being slightly less radical can be criticized as conservatism. A rate cut that is not thorough is essentially not cutting rates at all. As a moderate standing in the middle, you will be criticized as too left by those on your right and too right by those on your left. So-called, neither side is human.

Why do Chinese philosophers like to talk about the doctrine of the mean? This is called compensating for what is lacking. The ancient Chinese sages saw through this long ago; society easily evolves into an 'M-shaped' structure, and those who stand in the middle are the bravest. Without courage, one cannot stand in the middle. Without enough strength, standing in the middle will lead to being torn to pieces. It's either black or white, either left or right; it’s either heaven or hell, with one thought becoming a Buddha and another thought becoming a ghost. Today is the blockchain revolution, tomorrow is the tulip scam. It is very easy to play tricks and act mysteriously.

To be a remarkable person who floats between heaven and earth and stands tall is very difficult. It is very easy to mindlessly cater to popular emotions by either praising or denouncing. To objectively and impartially view new things and seize historical opportunities is very difficult. Not understanding her goodness is because one has not been with her. Once you have been with her long enough, you will know her goodness. At the early morning press conference, a statement by Powell during a question-and-answer session with reporters went viral. A reporter asked about the U.S. national BTC strategic reserve.

Powell responded: The Federal Reserve is not allowed to own Bitcoin. We are also not seeking any legal changes regarding this.