Pro-Crypto Stephen Miran Joins Fed as Rate Cut Looms
Stephen Miran Sworn in as Fed Governor Before Key FOMC Meeting
Stephen Miran is officially a member of the Federal Reserve Board of Governors. His appointment comes just before the Federal Open Market Committee (FOMC) meeting, where a potential rate cut could significantly influence Bitcoin and the broader cryptocurrency market.
Miran's Confirmation and the FOMC
The Fed announced Miran's swearing-in following his Senate confirmation on September 15. He succeeds former Fed Governor Adriana Kugler. Miran's term extends until January 31 next year, allowing him immediate participation and voting rights at the upcoming FOMC meeting.
Potential Impact on Crypto Markets
As an ally of former President Trump, Miran is anticipated to favor a rate cut. Current data from CME FedWatch indicates a 96.1% chance of a 25 basis points (bps) rate cut and a smaller 4% chance of a 50 bps cut. Some analysts, including those at CoinGape, speculate that Miran, along with Michelle Bowman and Chris Waller, might advocate for a more aggressive 50 bps reduction.
Focus Shifts to Powell's Commentary
Analyst Kevin Capital suggests the crypto market's primary focus isn't merely the rate cut itself, which is largely priced in, but rather the forward-looking statements from Jerome Powell following the FOMC meeting.
- Powell's guidance on the Fed's strategy for the remainder of the year is critical.
- If Powell signals less likelihood of further rate cuts, the market could react negatively.
- Conversely, a dovish stance from Powell, open to further monetary easing, might spur growth in risk assets like Bitcoin.
Economic Context
Former Federal Reserve Vice Chairman Roger Ferguson anticipates a 25 bps cut, influenced by recent CPI data showing persistent inflation despite efforts to ease the labor market. Softening U.S. jobs data also supports the likelihood of a rate decrease.
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