The financial world buzzes after the president of the federal reserve, Jerome Powell, delivered a speech with high issues which addressed two hot button problems – cryptographic regulations and interest rates. Its message is that the United States needs clear rules for digital assets and do not expect reduction in rate of rate as soon as it is.
Speaking during the Fed FED Division of International Finance Finance 75th anniversary in Washington on Monday, Powell responded to the growing demand for regulatory clarity in crypto and the persistent inflation pressure.
His remarks have found a meticulous balance between prudence and opening, offering key signals for crypto lovers and market observers.
Crypto chaos needs control, says Powell
Powell has spoken clearly: the cryptography market, which is shaken by deception and volatility, requires clear regulation. He opted for in -depth regulations to protect investors.
As digital assets such as stablescoins and decentralized platforms become more common, agencies and CFTCs continue to fight against regulatory jurisdiction. Powell stressed that clear rules would help to legitimize cryptography, hunt bad actors and restore confidence among institutional and detail investors.
His comments arise at a pivotal moment for the space of digital assets, because he sees more adoption.
No drop in rate on the horizon
Regarding monetary policy, Powell has cooled hopes for a drop in imminent interest rate. Despite the previous optimism, the Fed holds firm because inflation remains above its target.
Powell has clearly indicated: the rate drops are out of the table until there is real and supported progress.
Adding to this prudent tone, the OECD recently revised its economic prospects, projecting the growth of American GDP to slow from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026. It also reported potential risks linked to the prices proposed by President Trump, warning these could add additional pressure and political clarity.
Bitcoin bounces, but the risks persist
The markets responded quickly to Powell’s remarks. After slipping below $ 103,000 over the weekend, Bitcoin rebounded at $ 105,455 on June 3, up 1.21%.
While the balanced approach to the Fed chair offered short -term help, cryptographic traders remain cautious. Global uncertainty – from inflation to geopolitical tensions – continues to weigh heavily on risk assets, including digital currencies.
Final socket: stable hands in trembling times
Powell’s speech did not give surprises, but he offered a direction. Its emphasis on the regulatory transparency of the crypto and a stable hand on monetary policy provides a roadmap to investors sailing in a volatile environment.
While the Fed holds land on rates and Washington inches towards clearer cryptography rules, the coming months could prove to be decisive. For the moment, the markets remain on board.
