Powell Signals No Immediate Rate Cuts, Greenlights Crypto Activities for Banks
Federal Reserve Chair Jerome Powell addressed Congress today with a cautiously optimistic outlook for the U.S. economy while offering clarity on inflation, interest rates, and digital assets.
Powell confirmed that the Fed will hold off on cutting interest rates, citing projections for a potential uptick in inflation later this year. While inflation has notably eased, he emphasized it remains “somewhat high,” and warned that trade-related price pressures could intensify starting in June.
“We’re not seeing a recession,” Powell stated, pushing back against fears of an imminent economic downturn. Instead, he reaffirmed that any monetary policy easing would be guided by data and implemented only “when the time is right.”
In a notable shift, Powell also said that U.S. banks are free to engage in crypto-related activities, a move that could open the door to greater institutional involvement in digital assets. The comment marks a significant departure from past regulatory caution and could signal broader acceptance of crypto within the traditional financial system.
Key Takeaways:
- No rate cuts expected in the near term due to inflation risks.
- Inflation has declined but remains above target.
- Powell dismissed recession concerns, saying the U.S. economy is on stable footing.
- Trade tariffs could fuel renewed inflation pressures from June.
- Banks are now officially allowed to conduct crypto-related operations.
Powell’s remarks underscore the Fed’s balancing act between curbing inflation and maintaining growth, while also signaling a more open stance toward emerging financial technologies.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
