Federal Reserve Chair Jerome Powell faced intense questioning from senators regarding the dismantling of the CFPB and Trump’s tariff policies. During his testimony, Powell maintained a diplomatic stance, emphasizing that it is not the Fed's responsibility to comment on tariff policies and recognizing ongoing issues with global trade dynamics, presumably in relation to China. Senators, including Elizabeth Warren, highlighted the absence of effective bank regulation without the CFPB, although Powell assured that bank accounts remain safe. Regarding the intersection of traditional banking and cryptocurrency, Powell acknowledged the risks involved and asserted that while crypto activities are present in Fed-regulated banks, it is crucial to manage these risks appropriately. On monetary policy, he indicated that interest rates would remain restrictive as the economy aims to make further progress on inflation, which is currently reported at 3%. He also mentioned that quantitative easing would only be considered when interest rates are at zero, cautioning against its potential long-term risks. Overall, the testimony reflected ongoing concerns about regulatory oversight in both banking and cryptocurrency sectors.

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