Powell said, ‘We’re not allowed to own Bitcoin. The Federal Reserve says what we can own and we’re not looking for a law change. That’s the kind of thing for Congress to consider but we are not looking for a law change at the Fed.’
So what he actually means is that under the current administration, there is no law that allows the Government/Federal Reserve to own Bitcoin. Obviously that could and possibly will change under a much more cryptocurrency friendly Trump administration.
Honestly I see no reason for such comment except to Create FUD.
His job was to Cut interest rate and give excuse why it could be paused in the future.