FedNow & Crypto: What To Expect From Jerome Powell Testimony?

Crypto Market News: Investors in the financial markets will be closely watching US Federal Reserve Chair Jerome Powell’s remarks before the US Senate House committee hearing on semiannual monetary policy on June 21 and 22, 2023. Meanwhile, the global crypto market cap currently stands at $1.08 trillion, taking a 1.03% increase over the last 24 hours. In the context of cooling inflation and the US Fed’s recent rate hike pauses, the Powell speech could act as a catalyst for the next cycle of crypto market rally. However, traders should keep in mind the Fed officials’ recent warnings about possibility of further rate hikes later in 2023.

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The Federal Reserve Chair is scheduled to testify before the US House Financial Services Committee on Wednesday. On the following day, Powell will take questions from the Senate Banking Committee as part of his semiannual testimony before lawmakers. Hence, the markets are bound to be swayed by any comments about the central bank’s forecast about future interest rate decisions. The Fed Chair submitted a report on monetary policy to the Congress ahead of the testimony.

Powell’s Views On Crypto

At the core of the testimony would be the Fed’s efforts to promote maximum employment and maintain stable prices. In the wake of recent regulatory developments against crypto exchanges, the Fed Chair may be posed with questions on his views on the current state of crypto regulation. In a hearing before the Senate Banking Committee in March 2023, he warned banks to be cautious when it comes to dealing with crypto companies. On the positive front, Powell said the Fed does not intend to, however, stifle innovation around the digital assets industry.

The central bank Chair may also be asked about the Fed’s upcoming launch of FedNow, an instant payments service to help financial institutions.

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