The banks authorized for encryption activities, and the Federal Reserve Chairman confirms Powell star-news.press/wp

The President of the Federal Reserve, Jerome Powell, announced on Tuesday that the banks will get the autonomy to determine the base of their customers, indicating an open door for digital asset investors and the introduction of new investment products that focus on encryption assets.

Freedom to engage in encryption activities

During it comments Before the House of Representatives Financial Services Committee, Powell stressed that banks are now known as providing banking services designed specifically for the coded currency industry and related companies.

On Tuesday, Powell also stressed that these digital asset activities should be conducted with a focus on maintaining safety and safety for ordinary investors.

This announcement follows the recent Federal Reserve’s decision to remove reputable risks from bank examination standards on Monday, a change in line with similar procedures by other American banking organizers, such as the Office of Accounting Observer (OCC) and the Federal Deposit Insurance Company (FDIC).

Banks have expressed their concerns that the previous focus on reputable risks may lead to self -provisions of the organizers, which may punish institutions to engage in legally permitted activities, including cryptocurrencies, which do not pose major financial risks.

With the removal of this standard, the Federal Reserve referred to a more lenient organizational environment, allowing financial institutions to engage in more freedom in projects and offers related to encryption.

Inflation

Treating the broader economic issues that can affect the prices of encrypted currency, Powell High Continuous concerns about inflation, which remains higher than the goal of the Federal Reserve of 2 %.

The President of the Federal Reserve indicated that the impact of President Donald Trump’s tariff on the economy is still inaccurate, saying: “Changes in politics are still developing, and their effects on the economy remain unconfirmed.”

Powell explained that the effects of definitions depend on their final levels and that the definitions historically led to an increase in prices for one time instead of continuous inflationary pressures.

As for inflation standards, Powell indicated that the preferred management of the Federal Reserve is likely to rise to 2.3 % in May, with the basic procedure – which food and energy were explored – at an edge of up to 2.6 %.

In April, these numbers were recorded by 2.1 % and 2.5 %, respectively. Powell and his colleagues in the Federal Open Market Committee (FOMC) are carefully studied by these dynamics and do not feel rushing to control the policy until more data is available on the impact of definitions.

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