#Write2Earn Fed Chair Jerome Powell calls for legislative action on #Stablecoins and #cbdc s, aiming for robust oversight and innovation support.STORY HIGHLIGHTSFederal Reserve Chairman Jerome Powell calls on Congress to create a legislative framework for stablecoins.Powell emphasizes the urgent need for regulations during a closed-door meeting with House Democrats.Powell also highlights the necessity of Congressional authorization to adopt Central Bank Digital Currencies (CBDCs).Federal Reserve Chairman Jerome Powell has called on Congress to develop a legislative framework for stablecoins. Addressing House Democrats in a closed-door meeting with the House Financial Services Committee, Powell highlighted the urgent need for stablecoins regulations, signaling the Federal Reserve’s proactive stance.#JeromePowell Push for Stablecoin LegislationJerome Powell’s discussions with lawmakers underscore a pivotal moment for the future of digital currencies in the United States. “We need a framework for stablecoins [and I’m] very supportive and am glad that we are close,” Powell stated, reflecting a growing consensus on the necessity of regulatory measures for stablecoins. This dialogue is part of a broader effort by the Federal Reserve to ensure that the development of stablecoin and Central Bank Digital Currencies (CBDC) regulations is grounded in robust oversight.The Federal Reserve Chairman also touched upon CBDCs, emphasizing that any move towards their adoption would require explicit authorization from Congress. “If we’re going to have a CBDC, Congress needs to authorize it,” Powell mentioned, reiterating the importance of legislative backing for such significant financial innovations. This stance was previously echoed in a hearing on monetary policy in June 2023, where Powell underscored the need for central bank credibility in monetary systems.Legislative Developments and Future DirectionsThe urgency for stablecoin regulation has been met with legislative action, as evidenced by the approval of two critical bills by the House Financial Services Committee in July 2023. The Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act represent significant strides towards creating a more structured regulatory environment for crypto firms and blockchain entities.The Financial Innovation and Technology for the 21st Century Act lays down a comprehensive framework for crypto firms to register with either the Commodity Futures Trading Commission (#CFTC ) or the Securities and Exchange Commission (SEC). It also introduces a process for certifying decentralized projects to foster innovation while ensuring consumer protection. On the other hand, the Blockchain Regulatory Certainty Act seeks to streamline regulations for blockchain entities, specifically defining which entities qualify as money transmitters. This bipartisan effort aims to clarify the regulatory landscape for blockchain technology, reducing ambiguity and fostering growth within the sector.

In recent news, the US Federal Reserve has made a long-anticipated decision to raise interest rates by 25 basis points. This move comes after a period of rapid rate hikes last year, during which the Fed implemented unusually large, three-quarter-point strides at one point. In a significant shift in approach, policymakers have adopted a more data-driven strategy, making meeting-to-meeting decisions based on incoming data.

While the Fed will not update its quarterly economic and interest rate projections at this week's meeting, they will discuss crucial quarterly bank survey data, which has gained significance following a series of regional bank crashes earlier this year.

The June projections suggested that the Fed was nearing the end of its rate hike cycle, with most policymakers believing that only a quarter-point increase was necessary beyond today's expected hike. The cryptocurrency market, including Bitcoin, is reacting to this development, as market participants closely monitor the situation and await insights from Jerome Powell's press conference at 18:30 (UTC), where further details about the Fed's decision-making process may be provided.

Data-Driven Strategy and Quarterly Bank Survey:

The Fed's decision to adopt a more data-driven strategy signifies a change in their approach to monetary policy. Instead of sticking to predetermined paths, policymakers are now reacting to incoming economic data and making adjustments accordingly. The discussion of crucial quarterly bank survey data is particularly relevant following a series of regional bank crashes earlier this year. This data could have implications for the broader financial landscape and could influence the Fed's future decisions. #interestrate

Cryptocurrency Market Reaction:

The cryptocurrency market, which has been known for its sensitivity to economic events and policy changes, is reacting to the Fed's interest rate hike. The impact on Bitcoin and other cryptocurrencies is being closely watched by investors and traders, as they navigate potential price fluctuations and adjust their strategies accordingly.

Looking Ahead:

Market participants are eagerly awaiting Jerome Powell's press conference at 18:30 (UTC), hoping for additional insights into the Fed's decision-making process and how they plan to navigate future economic challenges. Additionally, all eyes are on the upcoming release of new data on the personal consumption expenditures price index, which serves as the Fed's preferred measure of inflation. The release of this data, scheduled for Friday, could have further implications for the cryptocurrency market and other financial assets, as it may provide clues about the direction of future interest rate decisions. #bitcoin #BTC $BTC #JeromePowell

In Summary:

The US Federal Reserve's decision to raise interest rates by 25 basis points has had an immediate impact on the cryptocurrency market, prompting investors and traders to closely monitor the situation. With the Fed's shift towards a data-driven strategy and discussions around crucial bank survey data, market participants are keen to understand the implications for the broader economy. As Jerome Powell's press conference and the upcoming inflation data release approach, the financial world is on high alert for potential changes in the market landscape. #FED

🚨🇺🇸Here is the full coverage of #JeromePowell Powell's speech, in addition to journalists' questions and his responses to them.📍🇺🇸 The #USGDP Federal Reserve is committed to returning inflation towards its specified target and optimal exploitation of the labor market.📍🇺🇸In light of recent developments, the US Federal Reserve has become more cautious.📍🇺🇸Additional tightening of monetary policy will depend on how economic data develops.📍🇺🇸Recent data indicates that economic activity is growing at a very strong pace.📍🇺🇸Conditions in the labor market are still very strong, although the pace has clearly slowed.​📍🇺🇸Demand for employment still exceeds supply.📍🇺🇸US inflation is still higher than its target.📍🇺🇸Inflation has moderated clearly during the recent period.Some positive data does not mean that we have achieved our goal.📍🇺🇸We still have a lot of time to achieve the inflation target.The US Federal Reserve understands the difficulty of inflation for citizens.📍🇺🇸The US Federal Reserve raised interest rates significantly to control high inflation.📍🇺🇸The US Federal Reserve is committed to a tightening monetary policy in an attempt to control inflation and move towards its specified target.📍🇺🇸 The lack of calm conditions in the labor market may represent a danger to achieving the US Federal Reserve’s inflation target.📍🇺🇸The US Federal Reserve is monitoring local and global developments very carefully.📍🇺🇸The upcoming interest rate decisions will be taken at each meeting separately, and will depend on the upcoming economic data.📍🇺🇸The US Federal Reserve is committed to returning inflation towards its specified target, and this may require that conditions in the labor market weaken slightly.📍🇺🇸 We understand that the decisions of the US Federal Reserve affect all citizens.📍🇺🇸All decisions taken by the Fed are consistent with its commitments to achieving the goals of inflation and optimal exploitation of the labor market.🚨🇺🇸Jerome Powell answers journalists’ questions:📍🇺🇸Inflation has clearly decreased, but it is still above its target.📍🇺🇸Unemployment has risen slightly, but conditions in the labor market are still very strong.📍🇺🇸The US Federal Reserve is not yet sure that it has reached the peak of raising interest.📍🇺🇸 Tight monetary policy should remain for a while.We will take a decision to tighten monetary policy further if this is appropriate to curb high inflation.📍🇺🇸We have a lot of economic data, whether inflation data, labor market data, or economic growth data.📍🇺🇸All of this data affects interest decisions.📍🇺🇸Making a decision to raise interest again may depend on the pace of upcoming data.📍🇺🇸Economic recession is not among our basic scenarios.📍🇺🇸Financial conditions are very restricted at the moment and this can be clearly seen.📍🇺🇸It seems that our monetary policy is starting to affect the economy, but the American economy appears to be stronger and more resilient than we thought.📍🇺🇸We are dealing with the current economic situation as it currently is.📍🇺🇸If members of the US Federal Reserve see that the economic situation requires raising interest again, it will take a decision to do so.📍🇺🇸The current question currently is to what extent the US Federal Reserve can raise the interest rate.📍🇺🇸The next question will be to what extent the US Federal Reserve can maintain high interest rates.📍🇺🇸I think that the thinking might be to raise the interest rate once additionally, not twice.📍🇺🇸 The US Federal Reserve is monitoring geopolitical tensions as they occur in Russia and Ukraine and between Hamas and Israel.📍🇺🇸The best task the US Federal Reserve can do for the United States is to restore the goal of price stability.📍🇺🇸We are trying to restore the inflation target without unemployment rising too high.📍🇺🇸Economic growth is very strong.📍🇺🇸 Most likely, we may need economic growth to slow down and conditions in the labor market to calm down, in order for us to restore the inflation target.📍🇺🇸We are currently working together to achieve the inflation goal.📍🇺🇸We may need some slowdown until the goal of price stability is achieved.📍🇺🇸Economic data is what will tell us what to do and whether we will continue to raise interest or not.📍🇺🇸 Interest expectations for US Federal Reserve members may change based on economic developments.📍🇺🇸 Interest expectations were changed during the quarterly meetings of the US Federal Reserve based on economic developments.📍🇺🇸The US Federal Reserve moves each meeting individually, and this depends on the economic data.📍🇺🇸The US Federal Reserve is moving very cautiously, and monetary policy is tightening at the present time, and we are seeing its repercussions on the American economy currently.📍🇺🇸We monitor many economic conditions and developments.

U.S. #regulations can grow digital assets properly

#JeromePowell , chairman of the Federal Reserve System (Fed), said at a hearing in the House of Representatives from 0:00 on the 9th, Korean time, 'Do you think there is more potential for growth if there are safeguards and regulations for digital assets in the United States?' In response to the query, he replied, "I think it can grow if regulations are prepared and operated in a safe and sound way." He added, “I think the government can play an important role in regulating cryptocurrencies.

Powell, chairman of the #FederalReserve System (Fed), said at a hearing in the House of Representatives from 0:00 on the 9th, Korean time, "There is no new news right away regarding the issuance of CBDC (central bank issued digital currency), but several studies are currently underway. We are also discussing various directions internally.” "Nothing has been decided about CBDC right now. It's still in the experimental stage, even in the very early stages.

There is no problem with dollar-pegged stablecoins right now... Reserve details are unclear.

He said at a hearing in the House of Representatives from 0:00 on the 9th, Korean time, "Currently, some stablecoins are pegged 1-to-1 with the dollar, so there is no problem, but this peg history. I haven’t been able to look into details.” Earlier, he said at a Senate House hearing the day before, "I believe stablecoins and some public blockchains are risky, which are vulnerable to fraud and money laundering, but properly regulated stablecoins may exist.

"Inflation is easing, but remains very high"

Jerome Powell said at a hearing in the House of Representatives from 0:00 on the 9th (Korean time), "Inflation is easing, but remains very high. This is due to the tight labor market. "We also believe that volatile inflation is not very conducive to real wage growth."

"It may be higher than the final rate of 5.5% ... It is not yet decided whether to raise the rate in March"

Jerome Powell responded to a lawmaker's question, "Do we have to go through an economic recession to ease inflation?" I'm looking into it," he replied. He said, "I cannot answer the question 'Can the final interest rate be higher than 5.5%?' However, considering the data so far, there is a possibility that the final interest rate will be higher than 5.5%. No important data to refer to this has been announced yet.

#JeromePowell , chairman of the Federal Reserve System (Fed), attended a hearing in the Senate from 00:00 on the 8th, Korea time, and said that non-banking operations in the cryptocurrency industry should be regulated the same as banks. "Same regulation for equal businesses is my guiding principle," he added. "The #Fed is committed to regulation tailored to banks."

“I think #Stablecoins and some public #blockchains that are vulnerable to fraud and money laundering are dangerous, but traditional financial products In a similar way, appropriately regulated stablecoins may exist." Prior to this, he said that non-banking businesses in the cryptocurrency industry should be subject to the same level of regulation as banks.

“It is important for the United States to come up with viable regulation for digital assets (cryptocurrency), but the Fed is involved. I am not in a position to do that,” he said. He also said, "In the past year, I have witnessed various incidents in the cryptocurrency market, such as large-scale fraud and the collapse of exchanges and banks. Personally, I think #cryptocurrency is an innovative field.

🇺🇸 Jerome Powell (head of #FED)

✔ Inflation has dropped significantly, progress in the economy.
✔ The further path is uncertain.
✔ Risks become more balanced.
✔ US GDP is supported by high consumption. demand and the “improvement” of supply chains.
✔ The Fed expects further improvement in the labor market.
✔ Inflation forecasts remain unchanged.
✔ Salary growth is weakening.
❗️ Perhaps at some point we will reduce the rate this year, but the prospects are uncertain.
✔ The rate has probably reached its peak.
✔ Unexpected weakness in the labor market - we will respond immediately!
✔ We are ready to keep the rate high if required!
❗️ We discussed with the chairs the SLOWdown of the Fed's balance sheet contraction (QT)
✔ Our forecasts do not mean that we have accepted the current level of inflation.
✔ Demand for goods, I believe, will continue to strive for balance with supply.
✔ Bilateral risks in the US economy - current realities.
❗️ Inflationary spikes in January and February are seasonal adjustments. Nothing terrible!
✔ If the labor market weakened significantly, we would promptly reduce the rate.
✔ A significant weakening of the labor market is a reason for the Fed to lower the rate.
❗️My intuition tells me that the Fed rate will not drop to the levels we have seen in past years.
✔ We need to see more data - we need confidence in a further decline in inflation.
✔ No one knows whether rates will be even higher in the long term.
✔ There remains a HIGH level of uncertainty around all of this.
✔ Most believe that the Fed will cut rates this year, but EVERYTHING will depend on the data.
✔ STRONG job growth is NOT a reason to worry about inflation.
✔ It is NORMAL if there is more stable inflation in the US in the 1st half of the year.
✔ Financial conditions (current), of course, put pressure on the country's economy.
✔ If there is a lot of demand, but the supply does not lag behind, inflation will not rise.
✔ We need more time to evaluate winter inflation data.
❗️NO MORE crazy imbalance in the labor market!
❗️We expect the unemployment rate to RISE!
❗️There are no deadlines for reducing the rate of balance contraction (QT) ... SOON. That's all I can say.
✔ We want to avoid turbulence. This is the main reason for the slowdown in the balance sheet contraction (QT) rate.
✔ We closely monitor liquidity - we monitor money markets in order to stop reducing the balance sheet (selling Fed assets) IN TIME .
✔ We think it could further reduce the Fed's balance sheet.
✔ It is important to monitor inflation data.
✔ We remember 2019. We take into account all the data in order to avoid major liquidity problems.
✔ Questions about CBDC have become very relevant in recent years, but the Fed does not have a secret laboratory to create such a currency.
❗️We are still very far from creating a CBDC. There is no active work in this direction.
✔ The Fed is not ready to propose anything to the US Congress on the creation of a CBDC.
❗️The Fed is closely monitoring “stress indicators” in the country’s banking segment.
#JeromePowell #FedDecision