Can Trump draw Powell? The president of the federal reserve, Jerome Powell, asked questions to the congress on everything, from inflation to rate reductions for a second day.
For two days of testimony, the president of the federal reserve Jerome Powell asked questions of the congress on everything, inflation and monetary policy at cryptographic banks and the autonomy of the Fed. His prudent but revealing responses described the current priorities of the Central Bank and future orientation.
But first, take a look at the market – here is the state of the crypto so far in 2025:
- J Powell speaks -> downward price.
- Trump Memecoin -> Decrendy prices.
- Inauguration of Trump -> downward price.
- Deep Seek AI -> Decrease price.
- Trade prices -> Decrease prices.
- Crypto press conference and digital assets -> downward price.
- Blackrock announces EU BTC ETF -> Decrease price.
All these events make Bitcoin emptying. How does it make you feel? Me? Not good.
Jerome Powell: “We are not here on inflation”
Inflation took the front of the scene during the testimony of Powell, stimulated by a recent IPC report showing inflation reaching 3%. While recognizing progress, Powell underlined the determination of the Fed to lower it, declaring: “We are close but not there on inflation.”
Addressing the senatorial banking committee, Powell has confirmed the FOMC’s intention to maintain restrictive rates for the moment, noting: “We want to make more progress in inflation.” Remarks similar to the house highlighted the prudent position of the Fed, without precipitation to facilitate interest rates in a stable
“We are in a fairly good place with this economy,” said Powell. “Inflation taking the time to align with our target of 2%, our restrictive position remains appropriate.”
The US government has stolen 26.1% of your purchasing power since 2020 thanks to inflation.
If you do not earn more than 26.1% more money than 2020, you are poorer.
If your net value has not increased by 26.1% since 2020, you are poorer. pic.twitter.com/8suyquz7pd
– Dark Powell (@vladtheinflator) February 12, 2025
The audiences turned to the cryptocurrency, Jerome Powell attacking the guarantees against an collapse involving major cryptography issuers. He highlighted the importance of banks entering the risks linked to cryptographic companies.
“It is appropriate to ensure that banks engaging cryptographic activities include the risks involved,” he said while warning regulators to avoid overlying. “You don’t want to go too far. These activities already operate in a setting where banks understand and we understand what they are doing. »»
Independence of the Federal Reserve: Can Trump fire Powell?
The hearings also turned to the independence of the federal reserve, Powell stating a clear line on the presidential influence. Responding to spots with former president Trump, who has repeatedly criticized the Fed policy, Powell stressed that the law tackles the central bank of interference
During the hearing, senator Jack Reed (Dr.i.) asked Powell if the president could oust members of the Fed board of directors, referring to the recent events of the Kennedy Center. Powell closed it. “It is clearly not authorized by law,” he said, stressing that the Fed will not bow to political interference.
Quantitative relaxation has found its way in the discussion, Powell specifying that it is a tool reserved for disastrous situations. “Quantitative relaxation is a tool that we only use when rates are already zero,” he said, responding to concerns about his risk of inflation or devaluing the dollar.
Powell had a prudent line on prices, especially those intended for China. He recognized the commercial complexities, noting that the principles of free trade always apply – but not as transparent when a large global partner “does not really respect the rules”. However, he argued: “It is not the Fed’s work to do or comment on the pricing policy.”
To remember from the testimony of Jerome Powell Day 2
This week’s testimony has put the priorities of Powell naked – jumping inflation, anchoring monetary policy and holding the line on the independence of the Fed. He also discussed the difficult merger of crypto with conventional finances while putting the needle between transparency and economic stability.
EXPLORE: 15 new corner lists and coming to watch in 2025
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Key dishes to remember
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Whether it is to discuss prices, digital assets or political tools like QE, Powell’s responses reflect the prudent approach to the federal reserve.
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These salients of Jerome Powell are precious information on the future direction of the Fed
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We probably consider certain complex decisions of the Fed while the growing demand for balance between innovation, regulations and economic stability continued.
Can the Jerome Powell has just separated: can Trump draw Powell for no drop in rate? appeared first on 99Bitcoins.
