The Federal Reserve Chairman Jerome Powell said in his semi-annual monetary policy report before the US Senate Banking Committee that the inflationary pressures may be higher than expected.
Powell said that the process of lowering inflation to the Fed's target of 2% "has a long way to go and is likely to be bumpy." The Fed is prepared to speed up rate rises if needed. "The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," Powell said.
Powell also answered questions regarding regulations for crypto. He said,
"Same activity, same regulation. That covers crypto and all kinds of other activities. People will assume when they deal with something that looks like a money market fund that it has the same regulation as the money market fund, or bank deposit. So stablecoins need some attention in that respect."
When Powell made the testimony, the price of Bitcoin dropped below $22,000 at a time, then bounced back to above $22,200.
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Policy and Regulation