Powell Soothes CBDC Fears: No Direct Fed Accounts, Congress Holds the Key Fed Chair Jerome Powell took center stage before the Senate Banking Committee, addressing concerns about a
Central Bank Digital Currency (CBDC). But don't expect it to roll out anytime soon, he emphasized, assuring that the traditional banking system would remain at the forefront and no
individual accounts at the Federal Reserve were on the cards.
Individual accounts? Not for every American, Powell made clear. Those perks are reserved for
private banks, a practice that won't change. So, rest easy – a CBDC isn't looming on the horizon just yet, he assured the committee.
But what about Congress? Senator Cynthia Lummis probed Powell on whether their green light was needed for a CBDC launch. The answer was a resounding "Yes!" – legislative approval is a must, according to Powell's firm stance.
As for the
federal funds rate and potential cuts down the line, Powell played it cautious. Any decisions on rates will be taken only when absolutely necessary, he stressed during his presentation to policymakers on Capitol Hill. And let's not forget the impact of immigration on the economy – it's all part of the Fed's watchful eye.
With Powell at the helm, it seems like steady hands are guiding America's monetary ship through these uncertain waters.
