Federal Reserve Governor Michelle Bowman has said that while “cryptocurrency activities can present significant risks,” The Fed Does not want to “hinder growth.” She added: “B.By inhibiting progress, we could be driving innovation in this space towards the non-bank sector, leading to much less transparency and a potential risk to financial stability.”
Fed Governor Talks Crypto, US Economy, and Inflation
Michelle Bowman, a member of the Board Of Governors of the Federal Reserve System, spoke about cryptocurrency, the US economy, and the upcoming election on Tuesday At an Association Of Federal Reserve Bankers event in Miami.
Commenting on the collapse of crypto exchange FTX, and other recent events within the crypto space, the Fed Governor said: “These events have made it clear that cryptocurrency activities can present significant risks to consumers, businesses, and potentially the world.” financial system in general.
Noting that he expected some banks to continue exploring “how to engage in cryptocurrency-related activities,” Bowman emphasized:
The Fed In light of the risks these activities can pose, banks and other financial institutions will continue to be focused on this area. But The bottom line is that progress should not be hindered.
“As regulators, we must support innovation and recognize that the banking industry must evolve to meet consumer demand,” The Fed Governor continued.
“By inhibiting progress, we could be driving innovation in this space towards the non-bank sector, leading to much less transparency and a potential risk to financial stability. We are thinking about some of these issues and what a regulatory approach might look like,” He opined.
Regarding The Federal Reserve’s Fight against inflation Governor Bowman She stated that she supported the policy actions taken by the Federal Open Market Committee (FOMC), to reduce high inflation in the last year. “I am committed to taking further steps to bring inflation back to our target,” She emphasized.
The Fed Governor stated that the FOMC had been tightening monetary policies since last. March “through a combination of raising the fed funds rate by 4-1/4 percentage points and reducing our balance sheet holdings.”
While It is important to note that “we have seen a decline in some measures of inflation” In recent months, Bowman emphasized:
We Have a lot more work ahead of them, so I expect the FOMC not to stop raising interest rates to tighten their monetary policy.
What What do you think about? Federal Reserve Governor Michelle Bowman’s Statements about cryptocurrencies and The Fed’s Inflation reduction efforts? Let Please let us know your thoughts in the comments section.
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