US Federal Reserve Governor Christopher Waller believes dollar-backed stablecoins could increase the global influence of US monetary policy, while Bank of England's Megan Greene predicts tokenized deposits will supersede stablecoins. The debate impacts US crypto legislation.
Bond traders are pricing in a Fed rate hike by year-end 2026, impacting Bitcoin's investment case. Higher Treasury yields increase opportunity costs for non-yielding assets like BTC, while geopolitical uncertainty and sticky inflation fuel hawkish Fed sentiment.
Federal Reserve Governor Christopher Waller said Friday current economic conditions are complicating the Fed's approach to interest rates, with policymakers facing a potentially long-lasting inflation shock and a labor market with no job growth that nonetheless appears stable. He said the Fed may need to stay on hold for a prolonged period until the economic direction becomes clearer.
