Powell Clarifies Fed's Stance on CBDCs, No Authority or Plans to Issue Without Congressional Approval

Federal Reserve Chairman Jerome Powell clarified the Fed's stance on Central Bank Digital Currencies (CBDCs) during a recent discussion. Powell stated that the Federal Reserve does not have the authority to issue a CBDC and is not seeking such authority. He emphasized that the topic is not being discussed in the Federal Open Market Committee (FOMC) meetings and that the Fed is merely keeping up with developments in the digital currency space without any active plans to pursue a CBDC. Powell also noted that any move towards issuing a CBDC would require Congressional approval, and there are currently no plans to seek such approval. Powell specifically mentioned that the Fed does not have the authority to issue a retail CBDC that would be available to the public and that instant payments were not discussed in the FOMC meeting.