The Fed will continue to focus on crypto-Fed governor says: We do not want to hinder innovations-regulation
The Fed will continue to focus on crypto-Fed governor says: We do not want to hinder innovations-regulation
The governor of the US Federal Reserve, Michelle Bowman, says that "cryptocurrency activities can hide considerable risks". The Fed does not want to "hinder innovations". She added: "B By inhibiting innovations, we could push growth in this area into the non -banking sector, which would lead too much less transparency and potential risks for financial stability."
Fed governor about crypto, US economy and Inflation
Michelle Bowman, a member of the Board of Governor of the Federal Reserve System, spoke on Tuesday at a leadership event by the Florida Bankers Association in Miami about cryptocurrency, US economy and the Fed's efforts to lower inflation.
The Fed governor said to collapse the crypto exchange FTX and other recent events in the crypto room: "These events have made it clear that cryptocurrency activities can be considerable risks for consumers, companies and possibly the larger financial system."
Bowman found that you expected some banks to continue to be investigated "how you can participate in crypto -related activities," emphasized Bowman:
The Fed and other banking authorities will continue to concentrate on this area given the considerable risks that these activities can bring. But the bottom line we don't want to hinder innovations.
"As regulatory authorities, we should support innovations and acknowledge that the banking industry has to develop in order to satisfy consumer demand," continued the Fed governor.
"By inhibiting innovations, we could push growth in this area into the non -banking sector, which would lead too much less transparency and potential risks for financial stability. We think about some of these problems and what a regulatory approach could look like," she said.
in relation to the struggle of the Federal Reserve against inflation, governor Bowman said that she supported the political measures of the Federal Open Market Committee (FOMC) to combat the high inflation last year. "I am determined to take further measures to reduce inflation to our goal again," she emphasized.
The Fed governor said that FOMC has been fitting monetary policy since last March “by a combination of an increase in the guiding interest rate by 4-1/4 percentage points and reducing our balance sheet stocks”.
While Bowman found that "we have seen a decline in some inflation in the past few months," emphasized Bowman:
We still have a lot to do, so I assume that the FOMC will continue to raise interest rates to tighten monetary policy.
What do you think of the statements of the Governor of the US Federal Reserve, Michelle Bowman, about cryptocurrencies and the Fed's efforts to lower inflation? Let us know in the comment area below.
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