Fed Nominee Judy Shelton is Pro-Crypto & Could Push Bitcoin Past $10,000
Yesterday, after a long time, Bitcoin finally made some moves at a time when everything from stocks, gold, and silver is surging to new highs.
However, we are still stuck below $9,500, and $10,000 is still not a reality.
But what could help propel the digital asset above the psychological barrier of $10,000 is pro-crypto Judy Shelton.
$BTC by 10K within a few days would make sense.
One word: Shelton.
— Alex (@classicmacro) July 21, 2020
Judy Shelton is a controversial nominee for the Federal Reserve's policymaking board, who cleared a significant hurdle to confirmation after a Senate Banking Committee voted to support the choice.
An economic adviser to Trump's 2016 presidential campaign, the candidacy of Shelton for the Fed's Board of Governors, was approved in a party-line vote, 13-12, despite objections from Democrats. The next and final stop will be a confirmation vote on the Senate floor where Republicans could block her way.
If approved, she would be one of the seven governors of the Fed. The good thing for the crypto market is she is pro-crypto.
“Money needs to be stable and provide the foundation for productive growth,” she had said previously, adding that she “like the idea of a gold standard and it could be used in a very cryptocurrency way.”
Shelton has drawn sharp criticism for her unorthodox view on monetary policy and has advocated for reduced Fed independence, which is supposed to be “independent and non-partisan.”
Some critics have warned that Trump might elevate her to replace Jerome Powell when his term ends in 2022, risking the independence of the US central bank.
Given that President Trump has regularly criticized the Fed on Twitter for too tight policy, not pushing interest rates into negative territory and not taking more dramatic actions, this will work in his favor.
“If Trump wins and Shelton is confirmed, she may be the front-runner to replace Powell. And if the GOP takes the Senate, a goldbug would then be at the head of the Fed. The market will have to wonder what is worse, if Warren as Treasury Secretary, or Shelton as Fed Chair,” said economist and trader Alex Kruger.
Shelton, who holds a doctorate in business administration while long favored returning the US to the gold standard, has questioned the need for a central bank-controlled benchmark interest rate.
She has also called for lower interest rates, which are in line with Trump's demands for earlier monetary policy.
And all of this works in favor of not only stocks and gold but also bitcoin.