FOMC

The U.S. Federal Reserve faces a crucial decision — should it cut interest rates by 25 or 50 basis points? Two key Fed governors, Chris Waller and Stephen Miran, are openly divided ahead of the upcoming FOMC meeting, a move that could shake not only Wall Street but also the global crypto markets.

Waller: “A 25-Point Cut Is Enough — Inflation Is Under Control”
Speaking at the Council on Foreign Relations, Waller said he believes the Fed should remain cautious and limit its October rate cut to 25 basis points (bps).

He noted that while Trump’s tariffs had a mild effect on inflation, overall price pressures are easing, and the Fed’s 2% target is within reach.
“We need to focus on the labor market now,” Waller said. “Wage growth has slowed, employment is weakening — the Fed should respond, but not overreact.”
Waller emphasized that if labor market weakness continues and inflation stays contained, the Fed should gradually move rates toward the neutral level, which he estimates to be 100–125 basis points below current levels.
For now, markets are siding with him: 94.6% of traders expect a 25 bps cut at the October meeting.

Miran: “We Need a Faster Move — 50 Points or Risk a Recession”
By contrast, Stephen Miran has made his position clear — the Fed must act faster and more decisively.

In an interview with FOX Business, he warned that rising geopolitical risks, especially the U.S.–China trade tensions, could slow economic growth.
“The economy is entering a phase of uncertainty — and if you hesitate, you fall behind,” Miran cautioned.
He believes the Fed should immediately cut rates by 50 bps to reach a neutral stance before the economy slips further.
Miran was also the lone dissenter at the September meeting, where he pushed for a 50-point cut while most FOMC members opted for a more gradual approach.

Two Views, One Dilemma
The sharp contrast between Waller and Miran underscores the deepening divide within the Fed.

While Waller favors a “slow and steady” strategy, Miran warns that too much caution could hurt the economy more than inflation itself.
While equity markets remain calm, the crypto market is watching closely.

A 25-bps cut would signal stability — but a 50-bps move could trigger excitement, along with fears that the Fed sees a bigger slowdown coming.

What to Expect on October 29
The October 29 FOMC meeting is shaping up to be one of the most consequential of the year.

Although inflation appears contained, wage growth and consumer demand are slowing — signals that could also impact cryptocurrency prices, which tend to react faster to monetary policy shifts than traditional assets.
One thing is certain: the Fed stands at a crossroads. Whether it opts for a gentle trim or a bold cut, the decision will have global consequences — from Wall Street to the world of digital assets.


#FederalReserve , #Fed , #interestrates , #fomc , #usa

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

As tensions between the United States and China flare up once again, a clear warning comes from the Federal Reserve.

Stephen Miran, a Fed Governor, has openly called for an immediate interest rate cut to prevent a potential slowdown in the U.S. economy — and perhaps to keep the global markets from spiraling into chaos.
“The longer we wait, the greater the risk,” Miran said, according to Bloomberg.


The Fed Under Geopolitical Pressure
Miran, one of the more proactive voices in U.S. monetary policy, emphasized that growing trade frictions with China have introduced a new wave of uncertainty.

“Downside risks are higher now than they were a week ago,” he said, referencing the threat of tariffs and supply chain disruptions.
The situation intensified after Donald Trump announced a 100% tariff on Chinese imports, effective November 1. The move, intended to strengthen America’s negotiating position, shook financial markets and increased pressure on the Fed to act swiftly.
According to Miran, this is the moment for preemptive action. “We need to move to a more neutral stance before the economy begins to crack,” he added.

Odds of a Rate Cut Surge
All signs point to another rate cut at the Fed’s October FOMC meeting.

Data from CME FedWatch show a 96.7% probability of a 25-basis-point cut on October 29.
Miran doesn’t believe that will be the last.

He considers it realistic for the Fed to cut rates twice more before the end of the year to stabilize growth and maintain market confidence.
Several other Fed officials — including Chris Waller and Michelle Bowman — have also expressed support for further easing by year-end.

Powell Hints at the Next Move
Fed Chair Jerome Powell recently signaled that another rate cut could come this month.

“The outlook hasn’t changed much since September,” Powell noted, referring to the Fed’s first rate cut of the year, which was triggered by a weakening labor market and slowing business investment.
Analysts say the new geopolitical stress — especially the renewed U.S.-China trade conflict — could become the main driver behind a more aggressive easing cycle.

The Fed Between a Rock and a Hard Place
The Fed now finds itself in a delicate position.

On one side, the White House is playing hardball with Beijing, as Treasury Secretary Scott Bessent recently reminded, saying that the U.S. will not be “blackmailed by the market.”

On the other, that very stance adds pressure on the U.S. economy, which the Fed must protect.
In essence, Miran’s message is that political strength must be balanced with economic caution.

If Washington tightens the screws on China, the Fed must act to soften the blow for domestic markets.

Summary: The Fed Is Fighting a Fire Sparked by Politics
Stephen Miran has become a voice of pragmatism in a world where markets are caught between politics and reality.

His call for an immediate rate cut shows that the Fed now sees the main risk not in inflation, but in geopolitics.
If Trump’s tariffs take effect and the trade war fully reignites, the Fed will have no choice but to move fast — even if that means opening the door to a new era of cheap money.



#Fed , #interestrates , #TRUMP , #fomc , #FederalReserve

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Federal Reserve Chair Jerome Powell made fresh comments that sent waves across financial markets today. Speaking about inflation and the economy, Powell emphasized that while progress has been made, the Fed remains cautious about declaring victory too soon.
Powell reiterated that the Federal Reserve will “proceed carefully,” balancing the risk of cutting rates too early against the need to support slowing growth. His tone suggested that interest rate cuts may come later than markets expect, sparking immediate volatility across stocks, crypto, and bond markets.
The U.S. dollar strengthened slightly following his remarks, while major indices such as the S&P 500 and NASDAQ saw mixed reactions. Traders are now adjusting their expectations for the next FOMC meeting, closely watching inflation data and job reports for signs of the Fed’s next move.
👉 Investors and analysts agree: every word from Powell counts.
#PowellRemarks #FederalReserve #MarketNews #fomc #WallStreet