Trump's Selection of Bitcoin-Affiliated Economist for Fed Position Bolsters Bitcoin's Progression
New Appointment to the Federal Reserve Board Could Signal Shift in Monetary Policy
President Donald Trump has appointed Stephen Miran, a known supporter of Bitcoin, to a seat on the Federal Reserve Board. This move could signal a shift towards a more dovish monetary policy, with increased pressure for lower interest rates and potentially a greater presidential influence over the Fed's decisions.
Miran has been a vocal supporter of Trump's economic agenda, including tariff expansions, tax cuts, and lowering interest rates. This contrasts with the more cautious stance of current Fed Chair Jerome Powell. Greg Magadini, director of derivatives at Amberdata, believes traders interpret Miran's appointment as a shift towards easier policy from the Federal Reserve.
Regarding Bitcoin, Magadini believes traders are closely watching Fed signals as inflation remains stubborn. He referred to Bitcoin as "digital gold" and suggested that if the market becomes more worried about inflation, crypto has a lot of room to move higher. In fact, Bitcoin's price has increased by 2%, reaching $117,500 following Miran's appointment.
However, there are significant concerns about increased political influence over the Fed, which could affect its independence and regulatory approach to both traditional finance and emerging digital assets. Analysts highlight that Miran has coauthored proposals to increase presidential power over the Fed, including the ability to fire Fed governors and shift regulatory control to the Treasury. These proposals, if enacted, could have profound effects on economic stability and monetary policy credibility but would require significant Congressional approval and face political hurdles.
In summary, Miran’s appointment is likely to add pressure for rate cuts, favoring looser monetary policy. His known Bitcoin support suggests a potentially more crypto-friendly stance from the Fed. However, there are concerns about increased political influence over the Fed, which could affect its independence and long-term economic policy stability.
The latest PCE reading came in at 2.6%, above both the Fed's 2% target and the prior three-month average of 2.3%. U.S. Treasury auctions have shown weak demand in recent weeks, according to Magadini. Actual changes will depend on Senate confirmation, Fed vote dynamics, and legislative processes regarding any Fed reforms.
Stephen Miran served in the Treasury Department during the first Trump administration in 2016. Adriana Kugler vacated a seat on the Federal Reserve Board last week. Miran currently serves as chairman of the Council of Economic Advisors. The Bretton Woods system, a post-WWII global monetary order that pegged currencies to the U.S. dollar, which was convertible to gold, lasted until the shift to floating exchange rates in 1973.
[1] Trump Names Bitcoin-Friendly Economist to Fed Board [2] Trump Appoints Bitcoin-Friendly Economist to Federal Reserve Board [3] Trump Appoints Crypto-Friendly Economist to the Federal Reserve Board [4] Trump's Appointment of Crypto-Friendly Economist to Fed Board Raises Concerns
[1] Trump's appointment of Stephen Miran, a known supporter of Bitcoin, to the Federal Reserve Board suggests a potential shift towards a more crypto-friendly monetary policy.
[2] The appointment of Stephen Miran, an economist with strong support for Bitcoin, by President Trump to the Federal Reserve Board has raised expectations for a more accommodative monetary policy and a possible increase in the Fed's interest in digital assets.
[3] The recent appointment of Stephen Miran, an advocate for Bitcoin, to the Federal Reserve Board indicates a possible change in monetary policy, with potential implications for the crypto market as a whole.
[4] President Trump's appointment of Stephen Miran, a vocal supporter of Bitcoin and lower interest rates, to the Federal Reserve Board has raised concerns about increased political influence over the Fed and its potential impact on traditional finance and emerging digital assets.
