FED Chairman Jerome Powell made many important statements in his speech at the DealBook Summit held at the New York Times last night.
Powell discussed US monetary policy, Bitcoin (BTC) and cryptocurrencies ahead of the December interest rate decision.
While markets were expecting the Fed to cut interest rates by 25 basis points in December, Powell did not mention whether they would cut interest rates for a third consecutive time. Instead, he signaled a cautious approach to rate cuts.
Powell also made important remarks about Bitcoin and said that Bitcoin is a rival to gold rather than the US dollar.
Powell made the following statement:
“People use Bitcoin as a speculative asset. Like gold. Bitcoin is just like gold – only virtual and digital.
People don't use it as a form of payment or store of value. It's too volatile.
Bitcoin is not a competitor to the dollar; it is actually a competitor to gold.”
When asked if he owned any cryptocurrencies, Powell responded that his position prohibits him from holding such assets.
Experts who evaluated Jerome Powell's statements stated that these statements were one of the rare statements in which Powell took a clear stance on Bitcoin's place in the financial system.
*This is not investment advice.
