The crypto market cap has moved up to $2,2 trillion after the Fed announced they would double the tapering of bond purchase and interest rates will stay the same for now. Fed’s chairman Jerome Powell held a news conference after the decision was taken where he approached several issues on the United States economy and current concerns for its financial stability. Related Reading | Bitcoin, Ether Spike After Fed Announce No Change To Interest Rates When asked about the concerning risks and systemic issues that could affect the U.S. financial stability nowadays, Powell broke it down to four essential “pieces” that the Feds “hold” themselves to. In his words, that’s separated in the following keys: Asset valuations: “are somewhat elevated”, Powell says. Debt owed by businesses and households: “households are in very strong financial shape”, and “businesses actually have a lot of debt, but their default rates are very very low.” Funding risk: The fed sees “market funds as a vulnerability and would applaud the SEC’s action this week”, claims Powell. Leverage among financial institutions: “is low in the sense that capital is high.” Followingly, Powell named scenarios that they are looking at as possible risks, which start at the “emergence of a new [Covid] variant” and the concerning possibility –with no basis– that...
