Federal Reserve Chairman Jerome Powell stated he is not rushing to cut interest rates despite calls for action due to inflation. He supports stablecoin regulations and aims to end anti-crypto debanking efforts. Powell’s comments look to maintain economic stability while fostering a regulatory framework for the crypto industry.

In a recent testimony before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell emphasized that there is no urgency to lower interest rates despite calls from President Trump for more aggressive cuts in response to high inflation. Powell’s stance remains steady, indicating that the Federal Reserve does not need to act hastily as it monitors economic conditions.

Powell pointed out that while prior interest rate reductions might have positively impacted the cryptocurrency market, excessive cuts could lead to adverse effects. His cautious approach aims to strike a balance, facilitating a stable market environment that limits excessive borrowing yet does not induce panic among investors, particularly regarding risk-sensitive assets like Bitcoin.

Additionally, Powell advocated for comprehensive regulations on stablecoins, highlighting the necessity for a secure framework that protects consumers and fosters the growth of digital currencies. He supports ongoing discussions about stablecoin policies and believes such developments are crucial for the financial ecosystem.

Moreover, Powell echoed sentiments shared by the crypto industry against initiatives like Operation Choke Point 2.0, expressing concern over increasing instances of alleged debanking. He intends to leverage his position to address these issues and support the industry in its quest for clearer guidelines and protections.

In summary, Federal Reserve Chairman Jerome Powell’s recent comments underscore a deliberate approach to interest rates alongside a strong advocacy for stablecoin regulation. By prioritizing stability over speed in monetary policy, he aims to foster a healthy financial environment for both traditional and digital assets. Furthermore, his commitment to combating anti-crypto debanking initiatives reflects a supportive stance toward the cryptocurrency industry.

Original Source: beincrypto.com

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