Today, Federal Reserve Chairman Jerome Powell told a Senate Banking Committee that he’s in no rush to cut interest rates. President Trump has agitated for more intense cuts due to high inflation, but Powell remains unmoved.

He also expressed his support for comprehensive new stablecoin regulations and an end to anti-crypto debanking campaigns. Although some in the industry wish for higher rate cuts, his statements were bullish overall.

Steady Interest Rates Might Be Bullish for Crypto

Jerome Powell, Chairman of the Federal Reserve and one of the US’ most powerful finance regulators, testified before a Senate Banking Committee today. Powell has recently taken a favorable approach to the crypto market, and his comments touched on a few key areas.

Most pressingly, Powell is not interested in cutting US interest rates.

The Federal Reserve cut US interest rates by 50 bps last September, and this had a bullish influence over the crypto market. However, aggressive cuts can have a negative impact, and he slowed the pace of future cuts in October.

Today, despite President Trump’s inflation-related requests for substantial cuts, Powell said that the Fed “does not need to be in a hurry.”

As Powell is well aware, rate cuts can be a double-edged sword. On one hand, small cuts limit borrowing, which may slow capital inflows into the crypto market.

On the other hand, intense cuts reflect market chaos and may encourage investors to take a conservative approach, especially with risk-on assets like Bitcoin. This middle course will maintain a status quo.