In the words of crypto proponent Mike Novogratz, the crypto market can be slowed down in the current Fed Chairman, Jerome Powell’s tenure with the Fed is extended for another term. While criticizing his re-nomination, the billionaire Novogratz commented that if Power becomes Chairman for the second time then he would rather act as the central bank himself which could hurt the US crypto economy.
Galaxy Digital’s CEO, Mike Novogratz had been seen commenting on the re-appointment proposal of Jerome Powell. Powell has been the Fed. Chairman for a whole term and recently his tenure has expired. However, the names which have been shortlisted for potential candidates of serving as Fed. Chair, include Powell’s name as well. Novogratz is expecting that Powell’s re-nomination can be negatively impactful for the US crypto economy.
It was the US President, Joe Biden, who had proposed Powell’s name for the second term as well. Although the position of the Fed Chair is one of the key positions in the US, however, Powell’s tenure saw the worst economic crisis. The crisis was caused due to Covid-19 and the official of the Fed has had to face huge challenges. Being Chairman of the Fed, Powell, had to make difficult decisions and the current US Administration is pleased with his performance. In view of his past performance, President Biden has felt that since the crisis is still there, it is better if Powell’s put back in place once more.
On the other hand, Novogratz is of the view that re-appointing Powell as the Fed Chairman is a bad idea. He said that if Powell is put back in place once again then he would as he is a central bank.
Novogratz stressed that inflation has already taken up the US economy in the worst way possible. Consequently, Fed would be asked by the Government to move faster than its usual pace. This would in return impact upon all traditional and digital assets as well. While the assets would be slowed down then subsequently NASDAQ too would slow down automatically. However, it would be the crypto economy, which would have to face slowness to a great extent.
Along with Novogratz, there were other experts from the business community like FBB Capital Partners’ Mike Bailey who also endorsed Novogratz’s viewpoint.