Fed should cut more than 100 basis points this year
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Federal Reserve (Fed) Governor Stephen Miran told Fox Business on Tuesday that he expects data to support more rate cuts and further argued that the Fed should cut more than 100 basis points this year. Key takeaways “Underlying inflation is near Fed’s target.” “Fed policy is restrictive and holding economy back.” “Have not spoken with Trump about becoming Fed chair.” “All names on short list for Fed chair are credible.” “Fiscal policy will support growth this year.” “Optimistic about economic growth.” “If monetary policy stays too tight, it might nip growth in the bud.” Market reaction These comments received a dovish score of 3.0 from FXStreet Fed Speechtracker. In turn, the US Dollar Index retreats from session highs and was last seen trading virtually unchanged on the day at 98.37. Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining…
Filed under: News - @ January 6, 2026 3:22 pm