More

    Fed Chair Jerome Powell Says Inflation Objective of 2% is Subjective, Crypto Has Store of Value Uses

    The chairman of the U.S. Federal Reserve (FED), Jerome Powell, answered some questions regarding regulations, inflation in the US, Bitcoin (BTC) and more.

    Rep. Warren Davidson from Ohio, started by asking Powell whether he believes regulatory clarity in the space could foster innovation in the cryptocurrency market. Powell answered that an increased regulatory clarity regarding the token economy would make sense for him.

    Rep. Davidson went on talking about inflation and how the FED expects to reach a 2% target. Davidson asked Powell if he is able to determine the level of variation for the expected inflation. Powell answered that a 2% inflation is an objective that may fluctuate according to how the economy evolves.

    Bitcoin, and other virtual currencies have pre-determined inflation rates that can only be reduced. For example, in 2020, Bitcoin is going to have an annual inflation rate of 1.8% without fluctuations. In 2024, this inflation rate is going to decrease even further.

    After it, Rep. Barry Loudermilk asked Jerome Powell if they have any position or thoughts regarding the impact of cryptocurrency from a monetary policy standpoint. Powell answered that cryptocurrencies do not have a large effect on monetary policy in the near term since people are not using them for making purchases in the economy.

    Moreover, he went on saying that they have been a store of value for some individuals and investors. However, he explained that due to the fact that they are very volatile, they have not attracted many individuals.

    The Congressman from Ohio has been always favouring a light regulation on virtual currencies and has been supporting the crypto space as a whole. He has also worked on a bill that aims at exempting ICOs from securities legislation by defining them as products.

    The U.S. Securities and Exchange Commission (SEC) has been trying to regulate the cryptocurrency market, specifically the Initial Coin Offering (ICO) market.

    Today's Crypto Price Predictions: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and BCH Analysis (Feb 27)

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Carl T
    Carl T
    Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,366FansLike
    2,782FollowersFollow
    4,137FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Galaxy Digital's Mike Novogratz: This Is The Year For BTC Or I Might ‘Hang Up My Spurs'

    Bitcoin proponent, Mike Novogratz is still “most excited” about the world's leading cryptocurrency but “if it doesn't go all out by the end of...

    National Internet Finance Association of China Warns Against Manipulative Crypto Exchanges

    The National Internet Finance Association of China(NIFA) has issued a warning for investors who have been associated with the crypto-verse about the growing risks...

    Cash is King in Coronavirus Ravaged Economy But Bitcoin is “Next in Line to the Throne”: Hedge Fund Manager

    Mark Yusko, the CEO at Morgan Creek Capital Management says coronavirus is unleashing a once in a lifetime downturn. Yusko appeared on CNBC’s “Trading Nation”...

    Bitcoin’s is Gold 2.0; Billionaire Chamath Palihapitiya Lays Out BTC’s Path Forward in Macro Backdrop

    In the latest episode of The Pomp Podcast, host Anthony "Pomp" Pompliano had Chamath Palihapitiya, the CEO of Social Capital as a guest who...

    Binance ‘Leak' Signals Possible Bitcoin Options Trading Launch On The Exchange

    The competition across cryptocurrency exchanges in the crypto derivatives markets is heating up to a boiling point as yet another big player hints at...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.