Fed Governor Stephen Miran Urges 50bps Rate Cuts
Fed Governor Stephen Miran pushes for aggressive 50bps rate cuts, signaling a shift toward looser U.S. monetary policy.
- Miran calls for rate cuts up to 50 basis points
- He argues lower rates are needed for growth stability
- Markets react to growing divide within the Federal Reserve
Fed Governor Pushes for Aggressive Rate Cuts
In a surprising move, Federal Reserve Governor Stephen Miran has called for aggressive interest rate cuts of up to 50 basis points, sparking widespread debate among economists and market analysts. Miran’s comments come shortly after the Fed opted for a smaller 25bps cut, highlighting growing divisions within the central bank’s leadership.
According to Reuters, Miran believes the U.S. economy is cooling faster than expected and that higher rates could risk unnecessary slowdowns in job creation and consumer spending. He argues that a more decisive cut could help maintain stability while keeping inflation in check.
Diverging Views Inside the Fed
While Miran pushes for a sharper reduction, most other Fed officials still prefer a cautious, step-by-step approach. This difference underscores a growing policy divide between those worried about inflation persistence and those concerned about slowing growth.
Miran has emphasized that his stance doesn’t represent a fundamental disagreement with Fed Chair Jerome Powell, but rather a difference in timing and urgency. He sees the “neutral rate” — the level where policy is neither stimulating nor slowing the economy — as being lower than current estimates.
Impact on Markets and Crypto
Financial markets reacted quickly to the news, with U.S. Treasury yields dipping and risk assets like Bitcoin and Ethereum seeing brief upward moves. Historically, aggressive rate cuts have supported liquidity-driven rallies, benefiting equities and digital assets alike.
However, investors remain cautious. If inflation proves sticky, larger rate cuts could backfire, forcing the Fed to reverse course later — a move that would shake confidence in monetary policy consistency.
What Comes Next?
Market participants will now watch upcoming FOMC meetings and inflation reports closely to see if Miran’s aggressive stance gains support among other policymakers. A swing toward faster rate cuts could reshape expectations for 2026, influencing everything from mortgage rates to crypto valuations.
As Miran continues to make his case, one thing is clear — the debate over how far and how fast the Fed should go is far from over.
