Federal Reserve Chair Jerome Powell stated that a central bank digital currency (CBDC) will not be issued during his term. This announcement was made during a Senate discussion.
Jerome Powell's Statement
Speaking at the Senate Banking Committee on February 11, Powell responded to questions from Ohio Senator Bernie Moreno. He confirmed that the Fed would not issue a CBDC while he is in charge. Powell's term is set to end in May 2026.
Senate Discussion
The Senate hearing focused on a semiannual monetary policy report. Senators Tim Scott and Cynthia Lummis questioned policies on debanking. Powell noted the Fed would 'take a fresh look' at these policies.
Republicans' Stance
Republicans in Congress and the White House prioritize preventing a digital dollar's release. President Donald Trump issued an executive order prohibiting a CBDC. Representative Tom Emmer's anti-CBDC bill passed the House and was referred to the Senate.
Powell's statements and Republican policies indicate that the issuance of a digital dollar in the US is unlikely in the near future.
