Powell Reassures Congress on CBDC, Stresses Need for Approval
Federal Reserve Chairman Jerome Powell engaged with the Senate Banking Committee, discussing the potential introduction of a central bank digital currency (CBDC).
Powell clarified that the exploration of a CBDC does not imply immediate deployment and would involve the traditional banking system, avoiding direct accounts at the Federal Reserve for individuals. He assured the committee that the Federal Reserve has no plans to create individual accounts for Americans, maintaining this privilege for private banks.
Powell emphasized and reassured congressional leaders that they should not be concerned about the immediate implementation of a CBDC, dispelling any unfounded worries. In response to Senator Cynthia Lummis’ inquiry, Powell affirmed the necessity of congressional approval for launching a CBDC. Additionally, Powell discussed the federal funds rate, potential rate reductions, and the impact of immigration on the U.S. economy, emphasizing that the Federal Reserve would make decisions on rate adjustments based on necessity.
Clever Robot News Desk 8th March 2024
