Explanation of bitcoin from the Fed
Fed Chairman Yellen, who has been in reviews for Bitcoin recently, has broken the record, using “Bitcoin is not a stable saving tool but a very speculative asset.”
Fed Chairman Janet Yellen assessed recent interest rate hikes and economic developments at a press conference following the Federal Open Market Committee (FOMC) meeting.
“The FOMC has taken its decision to raise the policy rate to the range of 1.25-1.50 percent by taking into account that the gradual tightening will protect the strong employment market and bring inflation back to 2 percent,” Yellen said, expecting the country’s economy to continue to grow moderately.
Yellen said the updated economic projections reflect the FOMC members’ assessments of the tax package, while the US administration’s likely changes in the tax system will likely accelerate in the next few years.
“YOUR GROWTH IS NOT POSSIBLE TO RISE TO 4 PERCENT BY TAX PACKAGE”
Emphasizing that the timing and magnitude of the economic effects of fiscal expansion policies are uncertain, Yellen said that it would not be possible for the tax package to grow to 4 percent, as US President Donald Trump claimed.
Yellen also noted that the anticipated tax legislation does not envisage strengthening the wages vigorously, but expects inflation to reach the 2 percent target in the mid-term.
“BITCOIN A VERY SPECULATIVE ASSET”
Yellen also responded to the questions of the press members, Bitcoin on record in the last days on record in this record also found in the reviews.
Yellen stressed that while “using Bitcoin as a speculative asset rather than a stable means of saving” means that the virtual money has a very small role in the payroll system and therefore risks to financial stability are limited.
“The Fed is not seriously evaluating the digital currency at this point, but it is exploring its possible benefits,” Yellen said, pointing out that the Fed’s role in controlling Bitcoin is very small.
On another question, Yellen said that stock prices were higher compared to historical standards in the last one-year increments and that this does not mean that the stock market is overvalued.
“INFLATION COMPLETED BUSINESS”
Fed Chairman Janet Yellen responded to the question whether there was anything that he could not or did not make during his four-year term, “We have not achieved this target for 2 years but we have not been able to achieve this goal in inflation.”
Yellen, who will be leaving in February next year as president, is entitled to say that he is “honored to have senior positions in the Fed for many years” on the question of whether US President Donald Trump has lived in disappointment for not showing him again as a presidential candidate.
President Trump had nominated Board member Jerome Powell for Yellen instead of Yellen at the beginning of November to head the Fed, one of the most important actors in the world economy.
In the country where the Fed was seen as an independent institution from politics, the fact that Yellen was not appointed for the presidency was recorded as a rare event in US history.
Fed President Janet Yellen has announced that the Fed will be dismissed from the Board of Directors following the start of Jerome Powell’s referendum a few weeks after Trump’s decision.