FED Chairman Jerome Powell spoke about Interest Rate Cuts and Cryptocurrency! "Will they buy Bitcoin (BTC)?" He answered the question!

FED Chairman Jerome Powell, will present the "Semiannual Monetary Policy Report" to the House Financial Services Committee yesterday and today.

Powell, who made his first presentation yesterday, made important statements on many topics, from interest rate cuts to cryptocurrencies.

Accordingly, the FED Chairman stated that inflation would rise in the coming months due to tariffs, but also added that he supports interest rate cuts in the later periods of this year.

At this point, Powell stated that the tariffs during the summer months would have an impact on inflation, noting that this effect could be short-lived or possibly long-lasting.

Powell stated that they are working to ensure the effects are short-lived, saying "The FOMC's mandate is to firmly anchor long-term inflation expectations at 2% and to prevent a one-time increase in price levels from becoming an ongoing inflation problem."

Powell stated that he has enough room to lower interest rates if needed.

Powell stated that current interest rates are high enough to allow for rate cuts, and if the data comes in as expected and the effects of tariffs are short-lived, they are prepared to act for reductions.

"We think we will start to see the impact of the tariffs on inflation in the summer, in the data from June and July.

We can see that inflation did not come as strong as we expected and that tariffs did not have a significant impact on inflation. If this is the case, we may start lowering interest rates earlier.

On the other hand, if we see that inflation comes in higher or if the labor market remains strong, then we are likely to move later.

However, a large portion of the FED members believe that interest rate cuts should be made towards the end of the year.

The FED Has No Authority Over Cryptocurrency!

Fed Chairman Jerome Powell also spoke about the Bitcoin (BTC) and cryptocurrencies. At this point, Powell stated that the *Fed cannot and will not ask for authorization to buy crypto.

Powell also added that the FED cannot legally purchase cryptocurrency and does not consider seeking such authority.

However, it was stated that banks can provide cryptocurrency services as long as security is ensured and that they are free to operate in this field.

Powell stated that in addition to his comments on crypto, the dollar will continue to be a reserve currency for a long time.

*This is not investment advice.

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