While We’re Waiting
Two weeks ago, FRB Chairman Powell told Congress (see Client Report FEDERALRESERVE62) that the eagerly-awaited Fed discussion paper on CBDC would now come out sometime in September instead of during the summer as initially promised. This week, Congress will set the stage for public review of that paper, looking at both CBDC and the cryptocurrency the Fed may be forced to forestall with a digital currency all its own. Because arguments for and against a CBDC in part depend on views for and against private cryptocurrencies, the two hearings will cover similar topics no matter their different focus.