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US Fed Chair Jerome Powell Breaks Silence on Bitcoin Strategic Reserve
Federal Reserve Chair Jerome Powell has dismissed any chances of the central bank adding Bitcoin to its balance sheet, citing legal constraints under the Federal Reserve Act. In a press conference yesterday, Powell confirmed that the institution has no plans to seek legislative changes to enable such actions.
“We’re not allowed to own Bitcoin,” Powell explained. “The Federal Reserve Act outlines what we can hold, and we’re not pursuing any amendments to that law. Changing the law is something for Congress to consider, but it’s not something we’re looking at.”
Powell’s remarks were met with a price decline in the Bitcoin market, as the BTC price dropped by 5.9%, landing at $100,605 after reaching an all-time high of $108,000 on December 18. Market reactions were further dampened by the Federal Reserve’s cautious stance, as Powell indicated that monetary policy has become “significantly less restrictive” after a full percentage point reduction in interest rates this year.
The central bank will continue to make decisions based on 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 dip, blockchain analytics firm Santiment highlighted Bitcoin’s resilience, stating that the cryptocurrency remaining above $100K despite Powell’s comments and market volatility shows a degree of underlying strength.
Source: www.cryptonewsz.com
