Fed Rate Cuts Urgently Needed Amid Rising Trade Tensions, Warns Stephen Miran

Monetary Policy at Breaking Point as Global Trade Wars Intensify

The Federal Reserve faces mounting pressure to slash interest rates as international trade conflicts escalate. Stephen Miran's urgent warning highlights the precarious position of central banks caught between inflation fears and economic protectionism.

Trade tensions aren't just political theater—they're hammering global supply chains and threatening to derail fragile economic recoveries. The Fed's traditional playbook looks increasingly outdated in this new era of economic warfare.

While central bankers debate their next move, markets are voting with their wallets—pouring into alternative assets that bypass traditional financial gatekeepers. Another case of monetary policy playing catch-up while real innovation happens elsewhere.

Miran calls for Fed to cut by 1.25%

Notably, Miran is vouching for an additional 1.25 percentage points cut in coming months. That’s on top of the 25 basis points cut the central bank announced following its Federal Open Market Committee meeting in September.

The FOMC’s next meeting is set for Oct. 28–29, with the market highly anticipating a further reduction in the interest rate. Another meeting is set for December, and the expectation is that the Fed will also lower rates.

On Tuesday, Oct. 14, Fed Chair Jerome Powell signaled a more dovish stance, and stocks and crypto alike moved higher.