Minneapolis Federal Reserve Chairman Neil Kashkari did not praise the cryptocurrency market in Tuesday’s rally.
The central bank governor said he did not see any use for bitcoin, the world’s largest cryptocurrency, and pointed to the vast cryptocurrency market marked by fraud and hype.
“Cryptocurrency is 95 percent fraud, hype, obfuscation, and confusion,” Kashkari said at the annual Pacific Northwest Regional Economic Summit in Big Sky, Montana yesterday.
Despite the fact that cryptocurrency gained a foothold among ordinary investors in 2021, many still lean towards the relatively new resource and consider it a speculative and high-risk business compared to traditional markets.
Bitcoin, Ethereum and dogecoin are down 0.9, 2.5 and 6.1 percent at the time of writing.
Downsize this year
Kashkari also came up with his opinions on monetary policy plans.
He says he sees some slack in the US labor market, and says he needs a couple of strong labor reports before he can support a cut in support purchases from the Federal Reserve.
Today, the central bank trades for $120 billion per month.
If the labor market cooperates, Kashkari believes it may be appropriate to reduce support purchases by the end of 2021.
In July, 943,000 jobs were created in the US, which many take as a sign that the economy is on its way back. This is despite the fact that the delta variant is spreading like wildfire around the world.
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