U.S. Federal Reserve Chairman Jerome Powell has once again stirred the waters around cryptocurrency and inflation. In a recent speech, he raised new concerns about economic risks and spoke openly about the need to regulate stablecoins, which are increasingly penetrating the financial system.

📈 Inflation Ahead, Major Shifts Incoming

Powell warned that newly introduced tariffs, immigration adjustments, and fiscal policy changes could significantly contribute to rising inflation over the coming months. This may complicate the already tricky environment, where inflation and unemployment are no longer moving in sync.

As a result, the Fed is likely to keep interest rates unchanged for now, waiting to assess the full impact of recent developments. Powell stressed that the central bank must carefully monitor how far key indicators are deviating from targets—and how long it might take to restore balance.

🪙 Stablecoins Under the Fed’s Microscope

On the crypto front, Powell highlighted the growing impact of stablecoins, digital currencies pegged to the U.S. dollar. He made it clear that it’s time to establish clear rules to govern their use, as they become a regular feature of financial transactions.

Powell also hinted that some banking regulations could be loosened for institutions handling digital assets—suggesting a broader move toward embracing crypto within traditional finance.

💥 Bitcoin Holds, Altcoins Climb

As Powell spoke, the markets responded positively: Bitcoin stayed above $84,000, showing a modest 0.37% daily gain.

Even stronger growth came from Solana (+4.23%), Ethereum (+2.2%), and Dogecoin (+0.96%), which followed Bitcoin’s bullish momentum.

Japanese firm Metaplanet added to the optimism by issuing a $10 million zero-interest bond to buy more Bitcoin—another sign of growing confidence in BTC’s future.

💬 Summary

Jerome Powell’s remarks point toward potential stablecoin regulations and new inflationary pressures driven by both global and domestic shifts. However, crypto markets are taking it as a positive signal—seeing it as a step toward regulatory clarity and greater institutional adoption of digital assets.

#JeromePowell , #CryptoRegulation , #Stablecoins , #FederalReserve , #USPolitics


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