Fed’s Kashkari Dismisses Crypto as ’Utterly Useless’ Amid Rate Cut Debate

Minneapolis Fed President Neel Kashkari has reignited tensions between policymakers and the crypto industry, labeling digital assets as 'utterly useless' during a period of heightened scrutiny over monetary policy. The remarks coincide with Federal Reserve minutes showing little appetite for near-term rate cuts, with some officials even floating the possibility of hikes.

Former Treasury Deputy Secretary Michael Faulkender countered prevailing economic narratives, arguing that deregulation, tax reforms, and energy expansion could fuel productivity growth without inflationary consequences. His projections—including 5% GDP growth with sub-1% inflation—hinge on AI-driven efficiency gains and falling energy prices, factors he claims Fed models undervalue.

The crypto market faces headwinds as institutional skepticism persists. Kashkari's comments reflect a broader regulatory chill, though assets like BTC, ETH, and SOL continue trading actively on exchanges including Binance, Coinbase, and Bybit. Meanwhile, memecoins such as DOGE, SHIB, and PEPE show resilience despite the rhetoric.