Federal Reserve Chair Jerome Powell sparked a major market drop during a Wednesday press conference. The Federal Reserve lowered interest rates by 0.25% to a range of 4.25%-4.5%.
Jerome Powell also stated while answering a question about Bitcoin, “We’re [The Federal Reserve] not allowed to own bitcoin…that’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”
Powell’s remarks triggered a relatively large drop in bitcoin’s price, dropping just above $100,000 before bouncing back slightly.
It is important to realize the Federal Reserve does not own gold as well. Powell’s statement on bitcoin has no bearing on President Trump’s plans to create a Strategic Bitcoin Reserve.