Jerome Powell Testifies Before Senate on Economic Policies and Crypto Risks

Jerome Powell testified before Congress, discussing various economic issues. Key points included:

Powell addressed concerns about free trade, mentioning challenges with countries like China.
He agreed with Senator Elizabeth Warren on the lack of regulatory oversight from the CFPB, emphasizing that bank accounts remain safe.
In response to Rep. Stephen Lynch, Powell acknowledged the risks associated with crypto in traditional banking but cautioned against excessive restrictions.
He confirmed that numerous crypto activities are occurring within Fed-regulated banks.
On monetary policy, Powell stated that the committee will proceed cautiously in lowering interest rates and aims to make progress on inflation, which currently stands at 3% according to the latest CPI report.
Powell reiterated that quantitative easing is only used when interest rates are near zero, linking it to potential long-term inflation risks.