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Powell talks economy, digital currencies

Apr 13, 2021

Federal Reserve Chairman Jerome Powell said the economy is at an “inflection point” and could experience rapid growth upwards of 6 percent or 7 percent this year in an interview on CBS’ 60 Minutes.

Powell also said that a rate increase this year is “highly unlikely” and noted the Fed’s involvement in a research and development project to study digital dollars to gain an “understanding [of] the technology and the possibilities so that you can really address the policy issues.”

More: Powell also said that the central bank is investigating whether losses borne by large banks related to the meltdown of over-leveraged investment fund Archegos Capital were the result of a risk management failure.

Related: ICBA’s recent blog post offers a primer on central bank digital currencies, as part of a new series on digital dollars. The blog also distinguishes CBDC from other types of digital assets, including stablecoins and other cryptocurrencies.