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US Fed Chair Jerome Powell Breaks Silence on Bitcoin Strategic Reserve
In a shocking turn of events, Federal Reserve Chair Jerome Powell has broken his silence on the prospect of adding Bitcoin to the central bank’s balance sheet. Speaking at a press conference yesterday, Powell categorically dismissed any possibility of the institution acquiring or holding Bitcoin.
According to Powell, the Federal Reserve Act strictly prohibits the central bank from owning cryptocurrencies like Bitcoin. In no uncertain terms, he ruled out any legislative changes that would enable the Fed to hold digital assets. “We’re not allowed to own Bitcoin,” he emphasized. “The Federal Reserve Act outlines what we can hold, and we’re not pursuing any amendments to that law.”
Powell’s statement comes as a significant blow to those who had been speculating about the possibility of a strategic Bitcoin reserve being established by the US Fed. The announcement sent shockwaves through the cryptocurrency market, causing Bitcoin prices to plummet by 5.9% to $100,605.
Market reactions were further dampened by Powell’s cautious stance on monetary policy, as he emphasized that future rate cuts would be guided by economic data, particularly inflation trends and labor market performance. “Our decisions moving into 2025 will depend heavily on progress in these areas,” he noted.
Despite the price drop, blockchain analytics firm Santiment highlighted Bitcoin’s resilience, stating that it has maintained its value above $100K despite Powell’s comments and market volatility, showing an underlying strength.
Source: www.cryptonewsz.com
