Fed Chair Powell Calls Bitcoin a Competitor to Gold, Not the US Dollar

When asked if he owns any crypto, Powell responded that he is not allowed to hold such assets due to his position.

SEATTLE (Scrap Monster): Federal Reserve Chair Jerome Powell, speaking at the New York Times DealBook Summit on Wednesday, addressed Bitcoin as a competitor to gold rather than the US dollar.

“People use Bitcoin as a speculative asset. It’s like gold, it’s just like gold—only it’s virtual, it’s digital,” Powell said. “People are not using it as a form of payment or a store of value. It’s highly volatile. It’s not a competitor for the dollar; it’s really a competitor for gold.”

Discussing crypto more broadly, Powell emphasized that the Federal Reserve’s role is to observe how digital assets interact with the banking system but clarified that the central bank does not regulate crypto assets.

When asked if he owns any crypto, Powell responded that he is not allowed to hold such assets due to his position.

Shifting to the broader economy, Powell expressed confidence in its current state, describing it as being in “great shape right now.”

However, he noted that growth has been stronger than anticipated and that inflation is running slightly higher than expected.

On monetary policy, he suggested the Federal Reserve could afford to take a cautious approach to cutting interest rates, citing a strong labor market and decreased economic risks.

The CME FedWatch Tool currently shows a 75% likelihood of a 25 basis point rate cut at the Fed’s upcoming December 18 meeting.

If implemented, this would lower the benchmark rate to a range of 4.25%-4.5%, down from its current range of 4.5%-4.75%.

The Federal Open Market Committee (FOMC) has already cut rates by 75 basis points across its September and November meetings.

Powell’s remarks represent his final public statements before the FOMC’s highly anticipated rate decision.

Courtesy: www.cryptobriefing.com

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