The Breakdown Powell: Banks Can Serve Crypto Industry
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Jan 31, 2025 Fed Chair Jerome Powell hints at a notable shift in how banks might engage with the crypto industry, stirring up discussions on regulatory changes. The balance between risk management and political influences also comes into play. The podcast dives deep into Bitcoin lending via Ledn and underscores the necessity of security in handling digital assets through Ledger wallets. Additionally, the recent Fed meeting outcomes highlight challenges in maintaining a 2% inflation target while adapting to cultural and political pressures.
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Fed's Shift on Crypto
- Fed Chair Jerome Powell signaled a shift in the Fed's stance on crypto, stating banks can serve crypto customers.
- This suggests an end to Operation Chokepoint 2.0, a perceived effort to restrict crypto banking.
Powell vs. Trump
- Jerome Powell refused to comment on Trump's demands for interest rate cuts, asserting the Fed's independence.
- Trump seemingly moderated his position, linking rate cuts to lower oil prices and reduced inflation.
Fed Statement Analysis
- The Fed's statement showed a hawkish shift, removing mention of inflation progress and highlighting solid labor market conditions.
- Powell clarified these were language changes, not signals, reiterating the commitment to the 2% inflation goal.