Is the Federal Reserve not allowed to own Bitcoin?

The Federal Reserve's December interest rate meeting ended as scheduled. The result met market expectations, continuing to cut rates by 25 basis points. This outcome exceeded the expectations of some who speculated about a halt in rate cuts. 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%, lowering the U.S. federal funds rate from 5.5% to 4.5%. This has returned to the interest rate level at the beginning of 2023.

After the rate cut, the three major U.S. stock indexes and the cryptocurrency market all saw a sharp pullback. Why? Because the anticipated rate cut had already been priced in by the market. This led to a situation where good news turned into negative sentiment; the mountains remain, yet the sunset shines again. Of course, the pullback is also related to the Fed Chairman's statement that next year’s policy adjustments may be more cautious, which contrasts with some market participants’ aggressive expectations for rapid rate cuts next year. After all, in this global wave of radicalism during the Kondratieff depression, being slightly less radical will lead to accusations of conservatism. A rate cut that is not thorough is essentially a complete halt to rate cuts. As a moderate standing in the middle, you will be criticized for being too left by those on your right and too right by those on your left. As the saying goes, you are not a person to either side.

Why does Chinese philosophy emphasize the Doctrine of the Mean? This is called making up for what is lacking. The ancient sages of China had long seen through this; 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 strength, standing in the middle will lead to being torn apart. It’s either black or white, either left or right; it’s either heaven or hell, one thought becomes a Buddha, another thought becomes a ghost. Today is the blockchain revolution; tomorrow is the tulip scam. It’s easy to play tricks.

It’s very difficult to be a person of great stature, floating between heaven and earth. It’s easy to mindlessly cater to public sentiment, whether through flattery or criticism. Objectively and impartially observing new things and seizing historical opportunities is very hard. Not understanding her goodness is because you haven’t been with her. After being with her for a while, you will come to know her goodness. During the early morning press conference, a statement from Powell during a Q&A with reporters became popular. 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.