Fed Chief Answers question about Rally in Dogecoin and GameStop markets
Chairman of the Board of Governors of the US Federal Reserve Jerome Powell gave a press conference on Wednesday, during which he shared his thoughts on recent developments in the financial markets. He answered a question from Yahoo Finance journalist Brian Chung regarding possible concerns due to the high volatility of the securities markets of GameStop and the Dogecoin cryptocurrency.
"A lot of people just look at asset prices and what's going on in the securities markets," Powell said, without specifying the asset names. – I think they reflect the high frothiness of the securities markets. But we try to stick to the regulatory framework and take our responsibility."
At the same time, he refuted suggestions that the aforementioned "froth" was caused by quantitative easing. He attributes the growth of the markets to the recovery of the economy from the coronavirus pandemic-related shocks against the background of a successful vaccination program.
During the press conference, Powell also addressed the issue of central bank digital currencies. "Digital currencies of central banks are now possible, and we will begin to see them in different parts of the world," he said, once again emphasizing that the Fed has no reason to accelerate work in this direction. – I'm less concerned that another digital currency might appear in another country sooner."
In March, Powell said that he does not see bitcoin as a threat to the dollar due to the high volatility of the cryptocurrency. "Crypto assets – we call them crypto assets-are highly volatile. Take a look at Bitcoin. Accordingly, they cannot be useful as a means of accumulation. This is more of an asset for speculation, as it is not particularly useful as a means of payment. It is more of a substitute for gold than for the dollar, " he said.