Fed's Stephen Miran Recommends Rate Cuts to Prevent Recession
- Stephen Miran calls for rate cuts to avert a recession.
- Potential benefits for interest-sensitive assets.
- Miran critiques statistical artifacts in current metrics.
Federal Reserve Governor Stephen Miran, speaking at Columbia University on December 15, 2025, advocated for more aggressive rate cuts in 2026 to avert a potential U.S. recession.
Miran’s call for rate cuts could boost interest-rate-sensitive assets like Bitcoin and Ethereum by encouraging liquidity, impacting markets reliant on borrowing costs and investment flows.
Federal Reserve Governor Stephen Miran urges rate cuts in 2026 to avoid a recession. His recommendation aims to move U.S. monetary policy toward a neutral stance, focusing on long-term economic stability. Federal Reserve Speech Transcript
Miran, appointed in 2025, warned about potential recession risks and advocated for a 50-basis-point rate cut. He emphasized the importance of avoiding job losses due to ongoing economic imbalances.
Impact on Interest-Rate-Sensitive Assets
His stance may influence interest-rate-sensitive assets, including BTC and ETH. Historically, these assets benefit from lower rates as borrowing becomes cheaper, potentially encouraging investment and liquidity. By promoting monetary easing, Miran addresses concerns over inflation’s disruptive patterns and seeks to balance economic growth with inflation control. His policy suggestions highlight the complex intersection of financial stability and economic policy.
Critique of Existing Metrics
Miran’s focus on “phantom inflation” led to critiques of statistical measures, advocating adjustments in policy interpretations. Lower rates may stimulate economic sectors prone to rate fluctuations. “Keeping policy unnecessarily tight because of an imbalance from 2022, or because of artifacts of the statistical measurement process, will lead to job losses.” – Firstpost
Implications for Federal Reserve Policy
Analyzing historical data, post-pandemic inflation affected core goods, contributing to sectoral imbalances. Miran’s approach could influence regulatory and technological advancements, impacting future Federal Reserve policies. His criticisms of statistical artifacts in inflation metrics highlight the need for refined policy interpretations.
