Federal Reserve’s Miran Advocates for Aggressive Rate Cuts

Stephen Miran, Federal Reserve Governor, endorsed more than a 100 basis points rate cut for 2026 during a Fox Business interview, contrasting with crypto traders pricing only two cuts.

Stephen Miran’s rate cut proposal indicates a dovish approach as inflation stabilizes, impacting various markets, including cryptocurrency. His stance diverges from crypto traders’ forecasts and affects major cryptocurrencies like Bitcoin and Ethereum.

Stephen Miran has advocated for a stronger cut in interest rates, exceeding 100 basis points, aligning with his past dissent for a 50 bps cut. Miran’s comments, during the January 6 Fox Business interview, signal significant departure from the December 2025 FOMC decision.

The announcement contrasts sharply with crypto traders’ expectations, who are only pricing in two rate cuts totaling 50 basis points. This presents a potential disconnect between Miran’s forecasts and the broader cryptocurrency market sentiment.

“Fed should cut more than 100 basis points this year,” adding “Underlying inflation is near Fed’s target,” “Fed policy is restrictive and holding economy back,” and “If monetary policy stays too tight, it might nip growth in the bud.” — Stephen Miran

This proposition may potentially stimulate the economy by easing tight monetary policies. Immediate market response includes increased Bitcoin and Ethereum prices, reflective of lower future borrowing costs.

Market analysts anticipate political, financial, and economic changes as the Fed potentially adjusts its monetary strategies. The prospect of such rate cuts raises questions about the economy’s growth trajectory and inflation control.

Potential outcomes could involve increased liquidity, affecting inflation and asset prices. Historical data suggests that rate cuts often lead to greater volatility in financial markets. Such policies could impact regulatory measures on stablecoins, with Miran showing previous support for these assets.