In the press conference on 12/18, Federal Reserve (FED) Chair Jerome Powell responded to a reporter's question about the possibility of the FED holding Bitcoin reserves. He cited the Federal Reserve Act, stating that the FED is not allowed to hold Bitcoin, and there are currently no plans to amend this law, as any changes would require a decision by the U.S. Congress, which is outside the FED's authority.
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ToggleReporter's question on the possibility of Bitcoin reserves, Powell: "Not in line with the Federal Reserve Act"
During the Q&A session, Powell was asked about the global trend of some countries gradually shifting their crypto-asset policies, and whether the FED might establish Bitcoin reserves. However, Powell stated that the FED's duty is to act in accordance with existing laws, and under the Federal Reserve Act, the FED is not allowed to hold Bitcoin or other crypto-assets. He emphasized that this issue should be deliberated by the U.S. Congress before any decision is made.
The FED's focus is on controlling inflation and stabilizing the economy
Throughout the press conference, Powell repeatedly reaffirmed that the FED's dual mandate is to promote "employment growth" and "price stability", and the current policy's primary goal is to lower the inflation rate to a stable 2%.
Powell noted that while the U.S. economy is performing strongly, with a stable labor market and a significant decline in the inflation rate from its peak, it will still take time to achieve the set targets. He also revealed that the current monetary policy has already been reduced by a full percentage point from its peak, and the restrictiveness of the policy stance has clearly diminished. When considering further adjustments to the policy rate in the future, the FED will be more cautious to ensure economic stability while maintaining price stability.
Bitcoin reserves are not a focus for the FED, no urgency to change policies
Powell mentioned that issues such as Bitcoin reserves or crypto-asset policies are not currently the FED's main focus. He added that although Bitcoin and other crypto-assets have gained significant global attention and have many supporters, fully incorporating these crypto-assets would require comprehensive consideration, including their potential impact on financial stability, regulation, and monetary policy. "We will continue to monitor the development of crypto-currencies, but the urgency is not high for the FED at the moment," Powell stated.
Risk Warning
Investing in crypto-currencies carries a high degree of risk, and their prices may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.
