By Nermeen Nabil Khear 
Powell pointed to potential risks arising from ongoing tariffs and policy changes, including in trade, immigration, and fiscal areas.
He acknowledged the uncertainty surrounding how these factors will play out. But he warned that they could push inflation higher while potentially slowing economic growth.
Powell Warns of Inflation, Supports Stablecoin Regulation
Powell’s warning about inflation stems from a broader set of policy changes. These changes could make it more difficult for businesses and consumers alike to navigate an already unpredictable economy. Tariffs could raise prices for a range of goods, making everyday products more expensive. Combined with changes in trade and immigration policies. This could limit the flow of goods and labor. Inflation may rise at a time when the economy is already trying to recover from pandemic-induced disruptions.
At the same time, fiscal and regulatory adjustments are expected to have far-reaching effects. Powell emphasized that these changes will likely create a mixed environment. In this environment, the economic benefits of growth might be outweighed by inflationary pressures. This uncertainty makes it harder for businesses to plan. It is also why the Fed is closely monitoring economic trends to ensure long-term stability.
FED CHAIR JAY POWELL:
– Crypto is going mainstream
– Bank rules on crypto to be relaxed— Bitcoin Archive (@BTC_Archive) April 16, 2025
Another notable aspect of his statement was the growing role of cryptocurrencies in the mainstream financial system. Powell pointed out that as digital currencies like Bitcoin and Ethereum become more integrated into the global economy. This makes sense for regulators to consider creating a legal framework for stablecoins.
More About Stablecoins
For the first time, stablecoins have surpassed Visa in transaction volume. This is a significant shift in the global financial landscape. According to Bitwise, stablecoins processed over $18 trillion in transactions, eclipsing Visa’s $17.6 trillion in the same period.
Something huge happened in 2024, and very few people are talking about it.
For the first time ever, stablecoins outpaced Visa in volume. pic.twitter.com/TxeO5Gs681
— Bitwise (@BitwiseInvest) April 16, 2025
This milestone underscores the growing adoption and utility of digital assets. Particularly stablecoins, which are pegged to traditional currencies like the U.S. dollar. The surge in stablecoin usage highlights their increasing role in facilitating faster, cheaper cross-border payments and digital asset transfers. This will solidify their place in the mainstream financial ecosystem.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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