Jerome Powell (Fed) is not considering a central bank digital currency for the US

Really no MNBC? Early March 2024, speech Jerome PowellChairman of the US Federal Reserve System (the Fed) was eagerly awaited by players in various financial markets around the world. Other than procrastinating on reduction (or not) of key rates of the US Federal Reserve, which is the subject of the Fed’s digital currency (MNBC) for the United States was also mentioned.

Due to the Fed’s key rate cut, we will have to go back!

Before we get into the subject of a possible US MNBC, let’s quickly deal with the new language Jerome Powell O key rates Federal Reserve System. In effect, the Fed was forced to respond (violently) to a inflation that just passed 10% in the United States in the summer of 2022 by performing a crazy increase of these key rates.

If inflation seems now relieved (just above 3%) its famous US Fed rates have been content for several months stagnate to form a a very high plateau.

Because they left almost zero at the beginning of 2022, these rates are locked in at 5.5% from the end of 2023. The stock and crypto markets are desperately waiting for the announcement rate dropwhich would be favorable for their upward recovery (although Bitcoin did not wait on its side). However, the response lukewarm and directionless Jerome Powell risks disappointing more than one:

“We expect to have more confidence that inflation will fall steadily to 2%. When we have this certainty and we are not far away, it will be appropriate to start reducing the level of restrictions so as not to drag the economy into recession. (…) We still have a way to go in this regard, but we have already made great progress. »

Jerome Powell, Chairman of the US Federal Reserve

No digital dollar on the agenda according to Jerome Powell (for now!)

Subject a digital dollar the Fed president also mentioned it. First he wanted a banker Make surein a way the most concerns about central bank digital currenciesexplaining that his institution would, according to him, be ” still very far from thinking » release MNBC.

“I want to make it clear that we are still a long way from recommending or let alone adopting a central bank digital currency in any form. »

Jerome Powell, Chairman of the US Federal Reserve

Faced with an urgent question pro-crypto Senator Cynthia Lummiswith Jerome Powell asking if the Fed would accept no initiative on multinational companies” without prior permission elected officials from US Congress “, the banker replied in the affirmative: ” Yes, I agree with that “.

THE digital dollar so probably a risk take your time see the light of day if this MNBC actually had to be created. Because this creation promises to be much more complicated than in the European Union, where The European Central Bank (ECB) is spending 1.3 billion euros to develop its MNBCL’digital eurowithout a prior vote of the elected representatives of the eurozone countries. Same inside Chinawhere one side is (CCP). in a rush to get their digital yuan outwith its very practical tracking of all transactions (and options freeze/cancel).

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