Jerome Powell: FOMC’s President Supports Digital Money

August 17, 2021, | AtoZ Markets- Jerome Powell, FOMC's President, presents The States of the US Labor Market. He is responding to questions at a virtual town hall with educators and students.

Powell spoke to a Web broadcast event with teachers and students, and much of the event involved basic information about the U.S.Labor Market and the central bank's ideas of the economic situation.

In addition, Jerome Powell said that "it is not yet clear whether the increased outbreak of the Delta variant of the coronavirus will have a notable impact on the economy."

However, the officer also had time to answer some questions about digital money, and his comments surprised everyone.

What Did Jerome Powell Says?

The pandemic is “still casting a shadow on economic activity. We cannot declare victory yet,” Powell said. But "many companies ... have adapted their business models to the new world," and can carry on.
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Referring to the labor market, Powell noted that "Millions of people in service sector jobs are still out of work, and it's a part of the recovery that is still far from complete."

Jerome Powell's message was one of reassurance and calm. He also sent tranquility about the economic effects of the pandemic. He also mentioned that the central bank's economic measures are far from being political, and are ready to be modified as needed.

Referring to the Tapering issue, for which all investors are waiting, he said that the "Fed is in the process of fully putting away its tools designed for real emergencies."

Powell and Digital Money

When asked, the official was clear in mentioning that "Digital money is becoming more and more important."

Likewise, about the so-called CBDC (electronic money issued by some central bank) or cryptocurrencies, he was blunt in saying that it is a "very interesting and challenging issue whether the Fed should have a digital currency".

In general terms, he made it clear that he supports technology based on a good education, and that this can help the economy. He also mentioned that he loves his job.

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