Fed’s Stephen Miran Calls for Rapid Rate Cuts Amid U.S.-China Trade Tensions
Highlights
- Stephen Miran stated that the trade tensions has increased uncertainty in the outlook for economic growth.
- He remarked that it has become urgent for them to achieve a neutral policy.
- The Fed Governor has earlier called for a series of 50-bps cuts.
Fed Governor Stephen Miran has again called for rapid cuts as the October FOMC meeting approaches. This time, he alluded to the rising U.S.-China trade tensions as the reason why they need to move fast on making more Fed rate cuts. The FOMC is expected to cut rates again this month, which could impact the crypto market.
Stephen Miran Urges Quick Fed Rate Cuts Amid Trade Tensions
According to a Bloomberg report, the Fed governor said that recent trade tensions have increased the uncertainty around the economic growth outlook, making it more necessary for them to lower rates quickly. He noted that there are more downside risks than there were a week ago, alluding to the uncertainty around trade between the U.S. and China, which Miran claimed has introduced a new tail risk.
As CoinGape reported, Trump recently announced a 100% tariff on China, starting November 1, raising concerns that a full-blown trade war may be on the horizon. Miran, who has been calling for more Fed rate cuts for a while now, noted that there has been a change to the balance of risks, which makes it expedient for them to get to a more neutral place in monetary policy quickly.
This comes even as the Fed is likely to make lower interest rates again at the upcoming October FOMC meeting. CME FedWatch data shows that there is a 96.7% chance that the Fed will make a 25 basis points (bps) cut at the October 29 meeting.
Notably, Miran said that he sees two more Fed rate cuts this year as being realistic. Other Fed officials, including Fed Governors Chris Waller and Michelle Bowman, have also shown support for two additional cuts by year-end.
Fed Chair Jerome Powell also indicated yesterday that they will likely make another cut this month. He noted that the outlook hasn’t changed much since their September meeting, when they made the first cut of the year due to the weakening labor market.
- Coinbase To List Binance Coin (BNB) Amid ‘Listing Fee’ Saga
- Peter Thiel-Backed Crypto Bank Erebor Gets OCC Greenlight as Ripple, Circle Await Charter Decisions
- Fed Chair Shortlist Now Down to Five Candidates, Scott Bessent Confirms
- Bitwise CIO Calls Crypto Crash a ‘Blip’ as Market Bounces Back With $338M ETF Inflows
- XRP News: Ripple Strikes Deal with Absa, Expanding Custody Footprint To Africa
- Cardano Price Teeters as Whales Exit and Bearish Signal Emerges
- Sui Price Targets $9.5 as Figure Brings SEC-Approved Yield Token YLDS to Sui
- Chainlink Price Eyes $100 as S&P Global Partnership Expands Institutional Adoption
- Solana Price Prediction as Whales Withdraw $169M from Exchanges
- Pro Says Ethereum Price is a Buy Despite Rising Liquidations and BlackRock Selling
- XRP Price Prediction as Whales Dump 2.23B Tokens — Is $2 the Next Stop?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
