Fed s Powell legitimately undecided on central bank digital currency
Reuters | Jul 15, 2021 03:54 PM EDT
Federal Reserve Chairman Jerome Powell takes his seat to testify before a Senate Banking, Housing and Urban Affairs Committee hearing (Photo : REUTERS/Kevin Lamarque)
Federal Reserve Chair Jerome Powell on Thursday said he had not made up his own mind on the pros and cons of a central bank digital currency, but he would want authorization from Congress before taking any action to create one. I am legitimately undecided on whether the benefits outweigh the costs or vice versa, Powell said during a hearing before the Senate Banking Committee when asked to clarify his position on what is emerging as a thorny issue for the U.S. central bank.
By Eileen Soreng (Reuters) - Gold prices climbed to a one-month peak on Thursday after U.S. Federal Reserve Chair Jerome Powell soothed investor fears by reassuring that he was in no rush to tighten policy, lifting the metal s appeal as an inflation hedge. Spot gold was up 0.3% at $1,832.23 per ounce, as of 0752 GMT. Earlier in the session, bullion hit a peak of $1,833.65, its highest since June 16. U.S. gold futures climbed 0.4% to $1,832.90. Powell stuck to the view on Wednesday that the current price increases are transitory and the Fed expects to continue its bond-buying until there is substantial further progress on jobs, with interest rates pinned near zero likely until at least 2023.
Jobless claims fall to pandemic low, underscoring U.S. rebound
Jobless claims fall to pandemic low.
Applications for U.S. state unemployment insurance fell last week to a fresh pandemic low, indicating that dismissals are easing as business conditions improve and firms look to increase headcounts.
Initial claims in regular state programs decreased by 26,000 to 360,000 in the week ended July 10, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 350,000 initial applications.
The drop in new unemployment claims is in line with a broader economic recovery in the U.S., with businesses back to full capacity and demand for travel and leisure surging.
The price for 10 gm of 22-carat gold on Friday jumped to Rs 47,480 from Rs 47,080. Silver was up at Rs 69,500 per kg, according to the Good Returns website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges. In New Delhi, the price of 22-carat gold was hiked to Rs 47,300 per 10 gm. In Chennai, it was up at Rs 45,750. The Mumbai rate is Rs 47,480, according to the website. The price for 24-carat surged to Rs 48,080 per 10 gm on Friday from Rs 47,080 in the previous trading session. This was the fourth straight day of gains for gold prices in India
U.S. Federal Reserve Chair Jerome Powell said on Thursday that he was legitimately undecided on the benefits and costs of issuing a U.S. central bank digital currency (CBDC).
I think our obligation is to explore both the technology and the policy issues over the next couple of years. That s what we re going to do so that we re in a position to make an informed recommendation, Powell said during a hearing before the Senate Banking Committee when asked to clarify his position on the CBDC.
If the Fed were to issue a CBDC, we would want very broad support in society and in Congress, Powell noted.