Fed’s Stephen Miran Backs 100+ Bps of Rate Cuts as Crypto Traders Price In Only Two

Federal Reserve Governor Stephen Miran has advocated for Fed rate cuts of over 100 basis points (bps) this year. This comes as crypto traders continue to increase bets that the Fed will only lower rates by 50 bps this year.

Miran Pushes For Over 100 Bps Fed Rate Cuts This Year

Speaking during a FOX Business interview, the Fed governor urged the FOMC to lower interest rates by more than 100 basis points this year. He also mentioned that he expects the data to support further rate cuts and that monetary policy is still restrictive and holding the economy back.

Miran’s push for this significant amount of Fed rate cuts is based on his belief that inflation is unlikely to rise, as some Fed officials worry. Notably, the FOMC minutes had shown that most officials support further cuts if inflation comes down as expected.

However, officials like Fed Governor Chris Waller have stated that there is no need to rush to make more cuts, although he admitted that the labor market’s weakness suggests they should still lower rates. He also mentioned that he doesn’t expect inflation to reaccelerate.

Miran, whose term as Fed governor expires at the end of this month, has continued to publicly advocate for larger Fed rate cuts. Last year, he was the sole dissent in favor of a 50 bps cut at the September, October, and December FOMC meetings. Based on his comments, he looks likely to vote in support of a 50 bps cut at the upcoming January FOMC meeting.

Amid Miran’s comments, crypto traders continue to price in only a 50 bps cut throughout the year, likely in the form of two 25 bps cuts. Polymarket data shows a 27% chance of two cuts this year. Furthermore, there is a 22%, 18%, and 11% chance of 75, 100, and 125 bps cuts, respectively.

Tom Barkin Comments On 2026 Outlook

Richmond Fed President Tom Barkin delivered a speech in North Carolina on the 2026 outlook. Barkin stated that both sides of their mandate bear watching as unemployment remains low on a historic basis, while inflation has come down but remains above their 2% target.

The Fed president remarked that, going forward, monetary policy will require finely tuned judgments balancing progress on both sides of their mandate. This came as he noted that labor market weakness prompted the three Fed rate cuts last year and that this has brought them to a level within estimates of the neutral range.

He added that he is looking forward to the incoming data ahead of the January FOMC meeting. One of the first major macro data points of the year will be the December CPI inflation report, which drops next week.

The November report came in well below expectations, suggesting that inflation was cooling in the U.S. However, New York Fed President John Williams said there were likely some distortions due to the government shutdown.