Is the Federal Reserve not allowed to own Bitcoin?
The Federal Reserve's interest rate meeting in December concluded as scheduled. The result met market expectations, continuing to cut rates by 25 basis points. This result exceeded prior speculation from some that a halt in rate cuts was expected. As of the second half of 2024, the Federal Reserve has cumulatively cut rates three times, totaling 100 basis points, or 1%, bringing the U.S. federal funds rate down from 5.5% to 4.5%. This has returned the rate to the level at the beginning of 2023.
The interest rate cut led to a simultaneous pullback in the three major U.S. stock indices and the crypto market. Why? Because the anticipated rate cut had already been priced in by the market. This led to a situation where the positive news turned into a negative reaction; the green hills are still there, yet the sunset has faded several times. Of course, the reason for the pullback is also related to the Federal Reserve Chairman's statement that next year's policy adjustments may need to be more cautious, which differs from the aggressive expectations of some in the market for continued rapid rate cuts next year. After all, in this global wave of radicalism during the K-wave depression, being slightly less radical can lead to criticism of being conservative. Not fully cutting rates is equivalent to not cutting rates at all. If you stand in the middle as a moderate, you will be criticized by those on your right for being too leftist, and by those on your left for being too rightist. The so-called neither side is a person.
Why does Chinese philosophy like to talk about the doctrine of the mean? This is called compensating for what is lacking. The ancient Chinese philosophers saw through this long ago; society easily evolves into an “M-shaped” structure, and those standing in the middle are the bravest. Without courage, one cannot stand in the middle. If not strong enough, standing in the middle will lead to being torn apart. It’s either black or white, either left or right, either heaven or hell; a single thought can lead to enlightenment or to darkness. Today is the blockchain revolution, tomorrow is the tulip bubble. Pretending to be mysterious is easy.
Becoming a person of great stature, floating between heaven and earth, is very difficult. Unquestioningly catering to the emotional highs or lows of the masses is easy. Objectively and impartially viewing new things and seizing historical opportunities is very difficult. Not understanding her goodness is because one has not been with her before. Once you have been together for a while, you will know her goodness. At the press conference in the early morning, a statement from Powell in response to a reporter's question 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 not seeking any legal changes regarding this.