Federal Reserve Chair Jerome Powell made statements concerning the current state of the economy and Bitcoin's status. Let's examine the key points of his speech.
Key Statements by Jerome Powell
Jerome Powell noted that the US economy is in good shape, with no reasons for deterioration. Unemployment remains low, and there is progress in reducing inflation. He emphasized that Fed policy should not be overly restrictive, allowing growth without undermining the labor market. Powell also stated that there is broad bipartisan support for the Fed's independence, with no risks to its loss.
Inflation and Growth Prospects
Although inflation remains close to the 2% target, it shows a slowdown in its decline. Fed members believe it will take up to two years to reach the target, with possibly no more than three interest rate cuts next year. These expectations are below prior forecasts.
Bitcoin: Digital Gold?
Jerome Powell affirmed that Bitcoin competes with gold, not the dollar, thus confirming its status as 'digital gold'. He noted that Bitcoin is used as a speculative asset similar to gold. There were also modest price increases and boosts in economic activity across states. "Bitcoin is just like gold, with the only difference being that it is digital," said Powell. "It is used as a speculative asset; it competes with gold, not the US dollar."
Jerome Powell's statements confirmed Bitcoin’s status as 'digital gold' and presented optimistic prospects for the U.S. economy, which continues to demonstrate steady growth.
