11.2 C
Manchester
September 19, 2020
Image default
Bitcoin

Powell: yes, we digitally print money – Blocksats

The head of the US Central Bank, the Federal Reserve, Jerome Powell, gave an interview in which he said directly that the institution is printing money today.

Powell: yes, we print money

Powell appeared on CBS in the popular program “60 minutes”. He said some interesting points.

First of all, he admitted with great openness that the Fed “Prints money digitally.”

“As a central bank, we have the ability to create money in a digital way. We do this by buying government bonds or other government-guaranteed debt securities. In this way, the money supply increases. We also print physical currency and distribute it through Federal Reserve banks. “

He said bluntly.

He added that compared to 2008, Fed activities “Are conducted on a much larger scale.”

“We buy a lot more assets than before. This time is different – in the previous crisis the financial sector was a problem, so support for the banking system was needed. Currently, problems come from the so-called real economy, concern companies producing goods and services. We try to help them through this difficult period.

We did a lot but I wouldn’t say we’re out of ammo. There is no limit to the loan programs we have launched. So we can do a lot to support the economy and we are determined to do it as long as it is needed. “

– added.

Did he mean that the reprint would continue? There are many indications. The more that he emphasized that the dollar is the world’s reserve currency, and this results in the fact that “We have the option of borrowing at a low cost.”

Economy with problems

The Fed is supposed to assume that unemployment in the US will reach 20-25 percent. However, the authorities are optimistic that the replay scenarios of the Great Depression will not happen again. This is surprising optimism, because Powell himself admitted that the US is indebted on a dangerous scale.

The US has been spending more than earning for a long time. We have to deal with this. However, the time for the economy to grow faster than debt is when the economic situation is good, unemployment is low, economic activity is high, etc. At the moment there is no time for it “

– He said.

As you can see, there is still a lot of carefree in Fed (though this can only be beyond the needs of the media), which will positively affect course BTC. The dollar reprint will continue. Everything points to it …

Related posts

Defrosting the economy will last until the end of June – says Minister Emilewicz – Blocksats

Aparnna Hajirnis

Coincheck will introduce Minecraft NFT tokens before the end of the year |

Aparnna Hajirnis

The future of Bitcoin: the influence of Tudor Jones, who invested in Corona

Aparnna Hajirnis

Leave a Comment