Categories: Payment system news

El Salvador’s Pro-Crypto President Bukele Criticizes The US Treasury For Uncontrolled Money Printing

El Salvador’s President Bukele cannot still get his head around the fact that the U.S. treasury keeps printing more money despite the ballooning inflation.

Commenting on the FED’s Jerome Powell’s defense of his “transitory inflation claims” in a Senate Banking Committee hearing on Tuesday, the pro-crypto president expressed his distaste for how the Powell administration had continued to kick the can down the road on matters concerning inflation.

“Can you guys just stop printing more money? You’re just going to make things worse. Really. It’s a no-brainer.” he said.

According to Bukele, Jerome’s response when put to task by Senator Pat Toomey as to how long does inflation has to run above his target before the FED decides, maybe it is not so transitory remained implausible.

“The test that we articulated clearly has been met now,” Powell said,” You’re right, inflation has run well above 2% for long enough…I think the word transitory has a different meaning to different people.” He continued.

“To many, it carries a sense of short-lived. We tend to use it to mean that it won’t leave a permanent mark, I think it is time to retire that word and try to explain more clearly what we mean”

Being a victim of inflation through uncontrolled monetary policies, Bukele knows where he hurts most hence his decision to accept Bitcoin as legal tender in the central American republic.

El Salvador has been using the U.S. dollar since 2001 when its native currency, the Salvadoran colon was mothballed, greatly reducing inflation levels in the country. However, the fiat standard despite being in the Dollar denomination posed a risk for most Salvadorans given the risk of potential shocks brought by inflation.

President Bukele has remained cautious about what the people at Washington discuss and pass regarding monetary policies. In October, the outspoken Bitcoin maximalist sent out a warning to investors after a “questionable” earnings report.

“Watch out for the holidays’ consumer demand. If the supply chain crisis is not addressed, we’ll see huge shortages of goods and, consequently, more inflation. Every politician knew they couldn’t kick the can down the road forever. We are reaching the end of the debt bubble.” he had said.

In the recent past, the FED has come under fire from quarters even as it continues to suppress interest rates while pushing bond tapering further away.

Although Powell disclosed that plans were underway to bring the tapering closer, dialing back the superlow interest rates aimed at countering higher inflation, he warned that the process could take a little longer, most likely proceeding to next year.

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