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Highlights
- Stephen Miran will be able to vote on a rate cut decision following his swearing in.
- He is expected to vote in favor of a rate cut.
- Analysts predict that he could be one of those who vote in favor of a 50 bps cut.
Pro-crypto Stephen Miran is now officially a member of the Federal Reserve board. This development comes ahead of the FOMC meeting, where the Fed is likely to make a rate cut, which could significantly impact Bitcoin and the broader crypto market.
Stephen Miran Joins Fed Board Ahead of FOMC Meeting
In a press release, the Fed revealed that Stephen Miran has taken his oath of office and now joins the Board of Governors. The pro-crypto Fed Governor replaces former Fed Governor Adriana Kugler, who resigned last month.
Miran’s swearing-in follows his Senate confirmation on September 15 in a tight vote of 48 to 47. He will serve on the Fed Board until January 31 next month. This development comes ahead of the FOMC meeting, which begins today, in which he will participate and vote on a Fed rate cut decision.
As a Trump ally, Miran may vote in favor of a rate cut, which could prove pivotal for the crypto market. There is currently a 100% chance that the Fed will lower interest rates. CME FedWatch data shows that there is a 96.1% chance of a 25 basis points (bps) rate cut and just a 4% chance of a 50 bps rate cut.
Meanwhile, as CoinGape reported, analysts view Miran as one of those, alongside Michelle Bowman and Chris Waller, who could dissent and vote in favor of a 50 bps rate cut. It is worth mentioning that Trump already urged Powell to make a higher cut than he has in mind ahead of the FOMC meeting.
However, experts such as former Federal Reserve Vice Chairman Roger Ferguson expect Powell and most of the Fed officials to vote in favor of a 25 bps cut rather than a 50 bps cut.
Ferguson alluded to the CPI data, which showed that inflation is rising even as the Fed moves to curtail the downside risk in the labor market. The August U.S. jobs data showed that the labor market is softening, which is why the Fed is likely to lower interest rates.
The Focus Is On Powell’s Speech
In an X post, analyst Kevin Capital indicated that the main focus for the crypto market is not the rate cut decision but Jerome Powell’s speech following the FOMC meeting. He noted that the market has already priced in the rate cut for a while now.
The analyst further claimed that Powell’s guidance and the Fed’s mindset going into the end of the year is what the market hasn’t priced in. This aligns with an earlier CoinGape report about how Powell’s speech could be what keeps the crypto rally alive or sends prices on a sharp decline.
Kevin noted that FedWatch is projecting two more rate cuts this year after tomorrow’s FOMC meeting. He remarked that if Powell throws cold water on that idea, then it means that tomorrow’s rate cut was a hawkish one and that the markets will likely react negatively.
However, the analyst believes risk assets like Bitcoin may move higher if the Fed Chair is dovish and open to the idea of further assessing monetary easing into the end of the year.
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