Former Fed Chair Janet Yellen Rejects Donald Trump’s Trade Policy, Criticizes Bitcoin
US stock markets have landed in hot waters. October 2018 has witnessed the worst stock market performance since 1987. While some crypto pundits claim that the bad performance of stocks could lead to the eventual rise of cryptocurrencies, the former chair of the US Federal Reserve Janet Yellen thinks otherwise. In a recent interview, she not only rejected President Trump’s trade policy but also said that Bitcoin is not a store of value.
The US Is in Good Shape
Yellen, who was answering questions at a live interview during the 2018 Canada FinTech Forum on Monday, said that conditions are “excellently excellent,” as far as the US is concerned. She noted:
“We haven’t had an unemployment rate as low as 3.7% in almost 50 years.”
Despite her claims, it is difficult to ignore that the S&P 500 fell by over 10 percent since the beginning of October, making it the worst month for US equities since the 2008 financial meltdown. It must also be noted that the stock market fall has come after an extended stock market bull run since the start of Trumps presidency.
Yellen maintains that 3 percent growth in GDP, an inflation rate of over 2 percent and a strong labor market is an indication of good economic times. She said that the emerging markets and the global economy are feeling the pressure, but the US is growing strongly.
She also went on to say that 2019 will be a strong year for the country. Her concerns are regarding the Fed, who may need to alter their objectives if the labor markets tighten and inflation moves beyond the 2 percent mark.
Yellen’s Disapproval of Bitcoin
Yellen is not convinced that Bitcoin or other cryptocurrencies are legitimate and noted that they have a very limited scope in day to day transactions and don’t work as a store of value.
“It has long been thought that for something to be a useful currency, it needs to be a stable source of value, and bitcoin is anything but. It’s not used for a lot of transactions, it’s not a stable source of value, and it’s not an efficient means of processing payments. It’s very slow in handling payments. It has difficulty because of its very decentralized nature.”
During her last days at the Fed, she criticized Bitcoin extensively calling cryptos highly speculative assets and reiterated the Fed’s 2014 stance that it does not have the authority to regulate crypto markets.
Former Fed Chair Janet Yellen Rejects Donald Trump’s Trade Policy, Criticizes Bitcoin was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.