Fed Governor Miran calls stablecoins ‘a force to be reckoned with’ that could put downward pressure on interest rates
The Block
Fed Governor Stephen Miran stated stablecoins are a significant force that could lower the neutral rate of interest.Summary
Federal Reserve Governor Stephen Miran, speaking publicly for the first time in his new role, described stablecoins as an "area of enormous growth" and "a force to be reckoned with." He noted that innovation in this space is already creating economic consequences relevant to monetary policy. Specifically, Miran suggested that widespread stablecoin use could exert downward pressure on the neutral rate of interest (r*), as it implies an increase in the net supply of loanable funds. If r* is lower, he argued, policy rates should also be lower to maintain a healthy economy. Miran joined the Fed in September and has previously advocated for interest rate cuts.
(Source：The Block)