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Jerome Powell Sees No ‘Macroeconomic Implications’ From Bitcoin Price Swings
The Federal Reserve is closely watching the crypto world—but isn’t worried, according to the central bank’s chairman.
Ankita K.
9:49 22nd Jun, 2022
Policy

The Federal Reserve is closely watching the crypto world—but isn’t worried, according to the central bank’s chairman.

The Federal Reserve is closely watching the crypto world—but isn’t worried, according to the central bank’s chairman.

Bitcoin and most other coins and tokens in the ecosystem have suffered dramatic price drops the past month as many investors worried about the Fed hiking interest rates to control inflation have sold off riskier assets.

Bitcoin right now is trading for $20,162.59, according to CoinMarketCap. Last November, it went as high as $68,789.63. The crypto market selloff seems to be closely correlated with equities, and the U.S. stock market has had a horrible year.

Powell also was asked about stablecoins—digital assets pegged to fiat money like the U.S. dollar that are less volatile than Bitcoin and considered the backbone of the crypto market. He said the world of stablecoins was “new and emerging” and didn’t have the “fit-for-purpose” regulation that it needs.

U.S. authorities have been keeping their eyes on stablecoins for some time now, with the Biden Administration looking at ways to regulate them.

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