The Long -awaited speech from Jerome Powell to Jackson Hole Due to the hope of decrease in the American Federal Reserve (Fed) rate in September. If this perspective pleases investors, it will not erase questions about the future President of the Fed.
The current Jerome Powell mandate will actually end in May 2024 and Donald Trump has to choose his successor from the list of candidates. According to the latest information, three of them are somewhat favorable for cryptocurrencies.
- Jackson Hole’s Speech by Jackson Hole in September again hope for the hope of a fed.
- Three potential candidates for the successor of Powell at the head of the Fed are favorable to cryptocurrencies and arouse curiosity for a possible change of cash caps.
Three candidates pro-beyard on Fed
Between 11 potential candidates To replace Jerome Powell, the three expressed a positive interest in cryptocurrencies. They are David Zervosthe main strategist in Jefferies, Rick RiederDirector of Investment in Blackrock and Michelle BowmanVice -chairman of the Fed supervision.
David Zevos is known for his support for bitcoins and digital assets. In 2023, in particular, he said “Bitcoin is covered against inflation and an alternative to the US dollar”. Rick Rieder, on the other hand, said in 2024 that “Bitcoins could be a large part of the asset allocation” and that “people are getting more comfortable”. Finally, Michelle Bowman recently suggested that Fed employees could invest a small amount in cryptocurrencies to better understand their functioning.
Change of course for Fed?
Choice and President of Fed Pro-Krypto It could mean a turning point in American monetary policy. Fed is indeedan institution that sets interest rates in the United StatesThis affects investments in financial markets. AND decline It increases liquidity and generally promotes risk assets such as cryptocurrencies, and has increased to the opposite effect.
And that’s where it hurts down. Jerome Powell that Donald Trump has already nicknamed “Têtu Cretin”, can detain his clearing with the US President until May 2026Date of the end of the Fed President’s mandate. Their relationship is historically conflict: Trump criticizes Powell for not lowering rates fast enough to stimulate the economy, and claims that too independent Fed slows his political agenda.
Powell versus Trump: Showdown
Today Powell remains focused on financial stability and monetary cautionWhile Trump is already preparing a narrower list of successors more politically more confident and potentially favorable for a rapid reduction in rate. This tension that does not directly concern the crypt but the general orientation of monetary policy, may have indirect consequences on the market of cryptocurrencyBecause any view of the decline in rates would promote liquidity and risky assets such as Bitcoin and Ethereum.
The Future President of the Fed Therefore, it will have to compose with the growing market of cryptocurrency, but also with economic and geopolitical challenges faced by the United States. The choice of Donald Trump will be decisive for the future of American monetary policy and for the development of the cryptocurrency market. It is important to realize that this final appointment will depend on various political and economic factors. The case to follow.
(Tagstotranslate) United States (US)