Fed Governor Miran Advocates 50 bps Rate Cut in December, Potentially Fueling Crypto Markets

Federal Reserve Governor Stephen Miran has publicly advocated for a significant 50 basis point interest rate cut in December 2025, reinforcing his stance on aggressive monetary easing. In recent Federal Reserve meetings and interviews, Miran emphasized that such a reduction is "appropriate," citing the need to support economic growth, though he acknowledged that new data could alter his position. His dissent in previous meetings and ongoing push for deeper cuts contrast with other officials, like Mary Daly, who favor more modest reductions.

Miran's exact words were: "Nothing is certain. We could get data that would make me change my mind between now and then. But failing new information that’s made me update my forecasts, looking out in time, yeah, I would think that 50 is appropriate, as I have in the past, but at a minimum 25." This proposal, if adopted, could inject substantial liquidity into financial markets, historically benefiting risk assets such as cryptocurrencies.

Analysts highlight that past dovish monetary policies have correlated with increased capital flows into digital assets, potentially boosting market activity and total value locked in DeFi protocols. Bitcoin and Ethereum are specifically noted as likely beneficiaries, given their prominence and historical performance during similar rate cut cycles. The timing of the December decision is critical, as it often sets market sentiment for the upcoming year, with experts anticipating possible rallies in major cryptocurrencies if the cut materializes.