Jerome Powell, Chairman of the Board of Governors of the US Federal Reserve System, gave a press conference on Wednesday, during which he shared his thoughts on recent developments in the financial markets. He answered a question from Yahoo Finance journalist Brian Chung regarding possible concerns about the high volatility of GameStop’s securities markets and Dogecoin cryptocurrency.
“A lot of people just look at the prices of assets and what happens to the securities markets,” Powell said, without specifying the names of the assets. – I think they reflect the high churning of the securities markets. But we are trying to adhere to the regulatory framework and bear our responsibility. ”
At the same time, he denied suggestions that the mentioned “foaming” was caused by quantitative easing. He associates the growth of markets with the economic recovery from the shocks associated with the coronavirus pandemic amid a successful vaccination program.
During the press conference, Powell also raised the issue of central bank digital currencies.
“Digital currencies of central banks are now possible, and we will begin to see them in various parts of the world,” he said, reiterating that the Fed has no reason to accelerate its work in this direction. “I am less concerned that another digital currency may appear in another country sooner.”
In March, Powell said he did not see Bitcoin as a threat to the dollar due to the high volatility of the cryptocurrency.
“Crypto-assets – we call them crypto-assets – are highly volatile. Take a look at Bitcoin. Accordingly, they cannot be useful as a store of value. It is more of an asset for speculation, as it is not particularly useful as a means of payment. It is rather a substitute for gold than for the dollar, ”he said.
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