Fed Chair Jerome Powell Spotlights Stablecoin Regulation and Policy Shift

The United States of America Federal Reserve Chair Jerome Powell has raised fresh concerns about inflation and signaled a shift in focus toward digital assets, stablecoin regulations, and banking rules. In his recent Speech, he addressed key issues affecting the U.S. economy, including trade changes, labor pressures, and the rise of digital currencies.

Jerome Powell on Inflation and Policy Changes

Per the latest update, Jerome Powell warned that a mix of recent and upcoming policy changes could put upward pressure on inflation in the months ahead. According to the X post, he pointed to tariffs, immigration adjustments, and fiscal and regulatory policy shifts as potential triggers. 

While the full effects are uncertain, the Fed Chair noted that these changes might also slow economic growth.

Referencing earlier remarks made in an April 4 report from CNN Business, the Republican leader mentioned that the US-China tariff war could keep inflation higher than expected. 

At the same time, he made it clear that the Federal Reserve would likely keep interest rates steady for now. The central bank will monitor how these developments affect both inflation and employment.

Powell acknowledged the Fed’s challenge when inflation and unemployment do not move in the same direction. He said the Fed would have to judge how far these indicators drift from their targets and how long it may take to restore balance. 

The Big Take on Stablecoin and Bank Regulation

Speaking on cryptocurrency, Jerome Powell said stablecoins are digital currencies linked to the U.S. dollar’s value. He explained that these coins are becoming more common in the financial system. 

As reported by CoinGape, Tether is contemplating launching a US-only stablecoin driven by President Donald Trump’s crypto policies. Drawing on this broad expansion, the Fed Chair said a clear set of rules needs to be established to manage stablecoin as its use grows.

Citing insights from the U.S. Committee on Banking, Housing, and Urban Affairs, Powell pointed out that stablecoins can make transactions more efficient and help support the dollar’s international strength. 

He also noted that regulations for banks handling cryptocurrencies could be loosened in some areas. This indicates a broader shift toward accepting crypto assets within traditional financial systems.

Bitcoin Price and Market Reaction

While Jerome Powell’s Speech made the headlines, market data shows that Bitcoin held steady above $84,000. As of this writing, the coin has pared off its losses and is up 0.37% in 24 hours.

Other assets, including Ethereum, Solana, and Dogecoin, have also jumped by 2.2%, 4.23%, and 0.96%, respectively. These altcoins are riding on BTC’s boost per their higher correlation trend.

Japanese company Metaplanet added optimism by issuing $10 million zero-interest bonds to buy more Bitcoin. Despite uncertainty in traditional markets, Bitcoin’s price remained steady, with some analysts watching for a possible long-term push toward the $100,000 mark.