The US President renews his confidence in the current Federal Reserve Chairman for a second term… What does this mean for the crypto community?


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The cryptocurrency community is on the lookout for more money printing as Jerome Powell may get another term as Federal Reserve Chairman.

US President Joe Biden has formally renominated Jerome Powell as Chairman of the Federal Reserve, with challenger Dr. Lyle Brainard as Vice Chair.

This would keep Powell in office for another 4 years, pending confirmation by the Senate, allowing him to set his agenda to tackle inflation.

Four more years for “Jerome Powell” and its implications for the crypto market:

Biden revealed his nominations in a White House statement earlier today.

In justifying his decision, he attributes the low unemployment rate in the US economy and the relatively rapid recovery to the “decisive action” taken by “Powell”.

It was stated in the statement:

President Powell provided consistent leadership during an unprecedentedly difficult period, including the largest economic downturn in modern history and attacks on Federal Reserve independence.

The president also expressed appreciation to Powell and Brainard for the need to address the economic impact of climate change.

Powell took over as Fed Chairman in February 2018.

Brainard became a member of the board of directors in 2014, after serving as undersecretary of the US Treasury.

In the wake of the pandemic and lockdowns around the world, Powell’s response called for an unprecedented government stimulus to prop up the US economy.

As such, 40% of the US dollars currently circulating in the past 12 months were printed under his leadership.

Many speculate that this contributed significantly to the country’s high inflation, which reached its highest level in 30 years last month.

Since then, Powell has announced plans to scale back his $120 billion monthly bond-purchasing program to deal with rising prices.

Inflation made many investors search for solutions and assets that would counter the prevailing and increasing inflation, which made the cryptocurrency arena flourish, with a total market value of more than 2.5 trillion dollars.

Powell and Bitcoin:

Last month, Powell confirmed that he has no intention of banning cryptocurrencies, including bitcoin.

However, the SEC chair shared his belief that stablecoins need to be regulated.

Earlier this year, the chairman recognized bitcoin as a potential alternative to gold, but not the dollar.

Earlier, Senator Cynthia Loomis recently suggested using bitcoin to stabilize the volatile dollar, which she says has been in a state of collapse under Powell.

Read also:

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