The Fed Cairo Stablecoin selects, and warns of the inflation driven by the tariff-Tradingview News

As the cryptocurrency world approaches the financial current, the President of the US Federal Reserve, Jerome Powell, is baptized for a legal framework on Stablecoins, digital codes are often linked to dollars that are increasingly used in global transactions.

But while Powell believes that the organization is a necessity, its broader comments raised new concerns about inflation and economic growth, sending shock through the markets and stopping the last Bitcoin communities.

Federal Reserve Emphasis is the need for Stablecoin

Speaking at the Chicago Economic Club, Powell pointed out that Stablecoins, despite the previous problems of the encryption sector, appeared as a digital product “that could already have a fairly wide attractiveness.”

His remarks followed years of hesitation in Washington, with previous efforts to organize short Stablecoins. Now, Powell believes that the momentum is turning.

This is not Powell’s first sign of anxiety. In 2023, Stablecoins was described as “a form of money” and urged strong federal supervision. With Stablecoins acquisition of transfers and encryption trading, legislators appear to take the case seriously. The Stablecoin Bill has recently cleared the Senate Banking Committee, and the current administration has made the policy of digital assets a major axis.

The last shift in tone is in line with wider developments in Washington. Under the leadership of President Trump, the United States has taken clear steps to embrace encryption, including the formation of the main counselor on digital assets.

The encryption faces pressure from the Fed Hawkish position

While Powell called for clarity on digital assets, he also struck a cautious tone on the economy. The President of the Federal Reserve said that the recent fluctuations of the market reflects the investor’s concern about President Trump’s sweeping policies. Powell acknowledged that the definitions may push inflation up with the slowdown and employment.

The reaction across the market was fast. Analysts have interpreted the Powell tone as firmly, indicating that interest rate discounts were not likely in the short term. While Powell suggested that encrypted banking regulations may reduce some extent, the wider total background indicates a difficult way for digital assets.

However, the renewed batch of stablecoin legislation indicates that policy makers have begun to address parts of the encryption sector, not as peaks for speculation but as financial tools that deserve the organizational structure.