Economic conditions and interest rate decisions
Posted: Wed Feb 12, 2025 5:11 am
The Federal Reserve's perspective
During his testimony, Powell said that the Federal Reserve does not intentionally want to exclude crypto firms from the banking system. He stressed that regulations can sometimes have unintended consequences, which has led to a growing number of debanking cases. "We are committed to taking a fresh look at this," Powell said, showing an increased awareness of the issue.
While discussions about crypto regulations continue, the Federal Reserve is sticking to its monetary policy stance. Powell warned that cutting interest rates too quickly could have a netherlands phone number list negative impact on economic progress. Currently, the inflation rate is above the target of 2%. The FED has kept interest rates between 5.25% and 5.5% since July 2023. Powell confirmed that future interest rate decisions will depend on current economic data.
See also Bonk Crypto 2025: Predictions and Opportunities for Local Investors
overall economic outlook
Economic indicators show the U.S. economy growing by 2.5% in 2024, driven by strong consumer spending and a resilient labor market. The unemployment rate is at 4%, and an average of 189,000 new jobs were created each month over the past four months. Despite a decline in inflation, core inflation remains at 2.8% in December, underscoring the challenge for the Federal Reserve to meet its goals while accounting for banking for crypto companies.
During his testimony, Powell said that the Federal Reserve does not intentionally want to exclude crypto firms from the banking system. He stressed that regulations can sometimes have unintended consequences, which has led to a growing number of debanking cases. "We are committed to taking a fresh look at this," Powell said, showing an increased awareness of the issue.
While discussions about crypto regulations continue, the Federal Reserve is sticking to its monetary policy stance. Powell warned that cutting interest rates too quickly could have a netherlands phone number list negative impact on economic progress. Currently, the inflation rate is above the target of 2%. The FED has kept interest rates between 5.25% and 5.5% since July 2023. Powell confirmed that future interest rate decisions will depend on current economic data.
See also Bonk Crypto 2025: Predictions and Opportunities for Local Investors
overall economic outlook
Economic indicators show the U.S. economy growing by 2.5% in 2024, driven by strong consumer spending and a resilient labor market. The unemployment rate is at 4%, and an average of 189,000 new jobs were created each month over the past four months. Despite a decline in inflation, core inflation remains at 2.8% in December, underscoring the challenge for the Federal Reserve to meet its goals while accounting for banking for crypto companies.