Speaking before the Senate Banking Committee, Fed Chairman Powell made important statements regarding monetary policy.
Speaking about the interest rate hike, where the markets were locked, Powell stated that the increase in inflation was due to the pandemic, and said that if necessary, we would increase interest rates to cool down inflation.
At this point, Powell’s statements that the low interest rate environment can continue even if there is an increase drew attention.
Stating that the US economy is recovering faster than they expected, Powell said that they are determined to achieve maximum employment and price stability targets.
Stating that the FED’s report on digital currencies is ready, Powell said that it will be published in a few weeks. Powell stated that the digital currency report was delayed due to other priorities.
“This year, monetary policy will approach normalization.
If we need to raise interest rates more, we increase it.
I think the low interest environment will be preserved.
We must achieve price stability, and we believe we will.
We will finish the asset purchases in March.
The report on digital currencies is ready.”
During Powell’s speech, a post on cryptocurrency regulations came from Senator Tom Emmer.
“New digital currency legislation is coming soon,” Emmer wrote on Twitter. said.
New digital currency legislation coming soon👀
— Tom Emmer (@RepTomEmmer) January 11, 2022
The talk continues, you can watch it live here.