A naukri.com initiative
Coindoo
2w
354
Image Credit: Coindoo
FED Chair Signals Support for Crypto Banking, Flags June Inflation Risk
- Federal Reserve Chair Jerome Powell expressed uncertainty over inflation dynamics and the broader economic outlook.
- Powell highlighted the Fed's awareness of short-term volatility and longer-term inflation risks.
- He mentioned that inflation might be temporary or more persistent.
- Powell stated that any decision on rate cuts would be made at the right time, indicating a cautious approach by the Fed.
- The Fed chair acknowledged possible inflation intensification due to recent tariff-driven price pressures, especially starting in June.
- Powell revealed that banks are allowed to participate in crypto-related activities, showing regulatory openness to the evolving financial landscape.
- This move aligns with a trend of increased institutional involvement in digital assets.
- His comments emphasize the challenge of managing inflation expectations, fostering growth, and adapting to emerging financial technologies like cryptocurrencies.
- No immediate action is planned by the Fed, leading markets to await upcoming inflation and labor data for insights on potential future rate adjustments.
Read Full Article
21 Likes
For uninterrupted reading, download the app