Fed Chair Jerome Powell Rules Out Bitcoin Involvement

Federal Reserve Chair Jerome Powell announced that the U.S. central bank will not hold bitcoin, citing legal barriers and expressing no interest in legislative changes. This statement comes amid discussions of a potential Strategic Bitcoin Reserve, impacting bitcoin's value post-election.

Federal Reserve Chair Jerome Powell has made it clear that the U.S. central bank has no intention of holding bitcoin. Speaking at a press conference after the Federal Open Market Committee meeting, Powell noted that existing regulations prevent the Fed from owning bitcoin.

The discussion around bitcoin ownership was sparked by talks of a possible Strategic Bitcoin Reserve once President-elect Donald Trump assumes office. However, Powell emphasized, "We're not looking for a law change at the Fed," leaving any legal development in Congress's hands.

His stance impacted bitcoin's value, which had seen a rise after Trump's election victory. The Fed's policy focus remains on interest rates, with a less certain outlook for monetary measures in coming months.

(With inputs from agencies.)