The president of the American federal reserve, Jerome Powell, offered little change in position of his recent remarks, reiterating that the economy is in a good place, giving the central bank the room to be patient before considering mitigating monetary policy.
“For the moment, we are well placed to wait to find out more about the probable course of the economy before considering the adjustments of our political position,” Powell said in remarks prepared for his semi -annual monetary policy report in the congress.
Today’s testimony is particularly to be noted given the conferences this week of the governors of the Fed Chris Waller and Michelle Bowman. The two said they would support a rate drop at the next Fed meeting. To date, Powell has not given any indication that he is considering such a decision.
The break with Powell – in itself, not necessarily major news – comes when President Trump continues to clarify his dissatisfaction with the reluctance of the president of the Fed to facilitate monetary policy.
The rates drop ratings for July continue to be quite thin at only 18.6%, according to CME Fedwatch. In September, the chances of one or more rate drops increased to more than 80%.
Powell was questioned more than once about the problems affecting the cryptography industry, although it is not an important field of questioning on Tuesday.
Asked about the interests of changing cryptography in the American bank, he declared that he saw “a very important change in tone” which suggests a future increase in the activity of digital assets based on “the evolution of thought and the evolution of the status of the cryptographic industry”. Although his agency was accused by the industry of encouraging banks to avoid crypto because of the risk of industry, he said that Fed’s opinion “is that banks can decide who are their customers.”
“Banks are also free to carry out cryptographic activities, as long as they do in a way that protects security and solidity,” he told legislators.
Powell also expressed support for progress in cryptographic legislation at the Congress.
“I think it’s a great thing that bills are moving,” he said. “We need it. We need a Stablecoin frame.”
Update (June 24, 2025, 17:13 UTC): Add Powell comments to crypto problems.
