U.S. Federal Reserve Chairman Jerome Powell responded to reporters' questions about Bitcoin reserves during a press conference on 12/18. He cited the Federal Reserve Act, stating that the Fed is not permitted to hold Bitcoin and currently has no plans to amend this law, as any changes would require a decision from the U.S. Congress, which is beyond the Fed's jurisdiction.
Reporter questions the possibility of Bitcoin reserves, Powell: 'Not in accordance with the Federal Reserve Act'
When opening the floor to questions from reporters, Powell was asked whether the Fed might establish Bitcoin reserves in light of the trend of some countries around the world gradually shifting their cryptocurrency policies. However, Powell stated that the Fed's responsibility is to act according to existing laws, and according to the Federal Reserve Act, the Fed is not allowed to hold Bitcoin or other crypto assets. He emphasized that this issue should be decided after deliberation by the U.S. Congress.
The Fed's focus is on controlling inflation and stabilizing the economy.
Throughout the press conference, Powell repeatedly emphasized that the Fed's dual mandate is to promote 'employment growth' and 'price stability,' with the primary goal of current policies being to reduce the inflation rate and stabilize it at 2%.
Powell pointed out that although the U.S. economy is performing strongly, the labor market is stable, and the inflation rate has significantly decreased from its peak, it will still take time to achieve the established goals. He also revealed that the current monetary policy has been lowered by a full percentage point from its peak, and the restrictive stance of policy has clearly diminished. Future considerations for further adjustments to policy rates will be approached with greater caution to ensure economic stability while maintaining price stability.
Bitcoin reserves are not a focus for the Fed, and there is no urgency to change policies.
Powell mentioned that the topics related to Bitcoin reserves or cryptocurrencies are not the current focus of the Fed. He added that despite the significant global attention on Bitcoin and other crypto assets, as well as their many supporters, a comprehensive consideration is required before incorporating these assets, including their potential impacts on financial stability, regulation, and monetary policy. 'We will undoubtedly continue to monitor the development of cryptocurrencies, but currently, there is no urgency for the Fed,' Powell stated.
(Only a two basis point cut in the U.S. next year? Bitcoin approaches 100K, a mass exodus in U.S. stock and cryptocurrency markets)
This article discusses the ongoing topic of Bitcoin reserves! U.S. Federal Reserve Chairman Powell: The Fed is not allowed to hold Bitcoin and other crypto assets, first appeared in ChainNews ABMedia.
