US President Joe Biden renominated the current FED Chair Jerome Powell for a second term as the crypto community prepares for more money printing as we can see more in today’s cryptocurrency news.
US president Joe Biden renominated Jerome Powell as the Chairman of the Federal Reserve with Lael Brainard as Vice President. This will put Powell in office for another 4 years after the Senate confirmation and will allow his agenda for addressing inflation to be put out to the test. Biden unveiled his nominations in the white house statement today and credited the US economy’s dropping unemployment and fast recovery due to Powell’s decisive actions. The statement reads:
“Chair Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve.”
Will Joe Biden bring more clarity to the crypto world?
The president showed appreciation for Powell and Brainard’s belief that climate change and the economic impacts have to be addressed. While the FED’s traditional mandates are to keep the unemployment rate low as well as keep low inflation, he said that they will re-focus the objectives. Powell became the FED chairman in 2018 while Brainard became a member of the board in 2014 after serving as an undersecretary for the US Department of Treasury. With the never-ending pandemic and lockdowns across the world, Powell’s response invoked a strong government stimulus to tone down the impact on the US economy. About 40% of the US dollar in circulation was printed in the past 12 months under his leadership and many speculate that this contributed to the rising inflation which reached a 30-year high a month ago.
Powell since announced plans to taper the $120 billion monthly bond purchase program to deal with the surging prices. However, Powell confirmed that he has no intention to ban crypto like Bitcoin. He shared SEC chairman Gary Gensler’s belief that stablecoins are in need of regulation. The chairman recognized BTC as a potential substitute for gold but he called it a speculative and failed currency because of its alleged inability to be a store of value or a medium of exchange. Bitcoiners disagreed and senator Senator Cynthia Lummis suggested using BTC to stabilize the unstable US Dollar as it entered a tailspin under Powell’s leadership but Anthony Pompliano even told his followers to prepare for inflation after Powel’s renomination.