Top FED Members Commented on Bitcoin, Cryptocurrencies and Interest Rates

In their latest statements, Fed members Christopher Waller and Austan Goolsbee expressed their views on key economic issues such as stablecoin regulation, inflation, and monetary policy.

Waller said it was important to regulate stablecoins, which he described as a “synthetic dollar” that has the potential to make payments faster and cheaper. While acknowledging their benefits, Waller said stablecoins require urgent regulatory oversight, adding, “The sooner the better.”

Waller also noted that stablecoins could further solidify the US dollar’s position as the world’s reserve currency. However, when asked about the possibility of the US creating a strategic Bitcoin reserve, he categorically rejected the idea from the Fed’s perspective, explaining that “the Fed will not implement such a project.”

Waller reiterated his skepticism on central bank digital currencies (CBDCs), saying he sees no need for the U.S. to launch an individual CBDC.

Related News: Il Capo's “Big Bull” Altcoin Crashed, Analyst Makes New Statement: He's Not Giving Up

Meanwhile, Austan Goolsbee offered an optimistic outlook for the US economy, noting that the job market has stabilized at full employment. He said the economy has “reached full employment, growth is continuing, and inflation is likely to fall to 2%.”

Goolsbee also touched on concerns about inflation, explaining that the recent sluggish inflation phenomenon is largely due to base effects. He also noted that tariffs can affect inflation, but their direct impact on prices may be less important than their impact on market expectations.

On interest rates, Goolsbee noted that long-term interest rates are shaped by complex market forces rather than direct actions by the Fed. However, he said he would be most concerned if long-term interest rates rose along with inflation expectations, but that has not yet happened.

Goolsbee also acknowledged that the current Fed policy rate is significantly higher than the neutral rate, suggesting that the pace of rate cuts should be slowed to find a suitable stopping point.

*This is not investment advice.

Continue Reading: Top FED Members Commented on Bitcoin, Cryptocurrencies and Interest Rates