How will Powell's re-election as chairman of the Federal Reserve affect cryptocurrencies?11/23/2021 US President Biden will re-nominate Fed Chairman Jerome Powell for another four-year chairmanship. This news gave Wall Street a sigh of relief. During the turbulent two years under the epidemic, the Federal Reserve's decision to cut interest rates and its measures to support the economy helped the United States avoid a long-term recession, and won Powell praise from professional and amateur investors.
Now, Powell faces new challenges: inflation is accelerating, supply chain disruptions are increasing, and some help needs to be reduced during the worst period of the epidemic. The main responsibility of the chairman of the Federal Reserve is to maintain price stability, guide decisions on when to raise or lower interest rates, and help as many people as possible find employment. Therefore, what the Fed does and Powell's re-election affects almost every aspect of Americans' daily financial lives, from their home purchase goals to retirement savings to the prices they pay for groceries. Keith Lerner, chief market strategist at Truist Consulting Services, said that Powell's re-election marks the continuation of loose monetary policy. He said: “This is good news for people who invest in retirement and 401(K) plans.” However, the chairman of the Federal Reserve is only one of many factors that affect the market and investment. He said: “There are also epidemic trends, economic trends, and Supply chain factors." What impact will Powell's re-election have on the crypto industry? In the past two years, the prices of high-risk investment assets such as cryptocurrencies have soared due to low interest rates, increasing consumer savings and US government stimulus measures. The price of Bitcoin has almost doubled since the beginning of the year. If Powell delays raising interest rates, investors may remain enthusiastic about such high-risk investments. There is also a view that cryptocurrencies can hedge against inflation. Proponents say
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