Donald Trump’s latest pick for the Federal Reserve is reviving a little-known “third mandate” that could reshape U.S. monetary policy, devalue the dollar, and send Bitcoin and crypto markets soaring.
A Third Mandate for the Federal Reserve
The U.S. Federal Reserve is traditionally known for its dual mandate: maintaining price stability and supporting maximum employment. But Stephen Miran, Trump’s nominee for Fed governor, is highlighting a third statutory requirement hidden in the Fed’s founding documents — to ensure “moderate long-term interest rates.”
This rarely mentioned mandate could open the door for aggressive monetary intervention, including yield curve control (YCC) and expanded quantitative easing (QE), Bloomberg reported. Such policies would allow the Fed to buy government bonds to keep long-term interest rates low.
Trump’s Push for Lower Rates
Donald Trump has long criticized the Fed for being “too slow” in cutting rates and has advocated for cheaper borrowing costs. The new focus on the third mandate could give his administration legal justification to actively suppress long-term rates.
Potential tools include:
- Direct yield curve control through bond purchases
- Expanded quantitative easing and money printing
- Increased Treasury bill issuance
- Government bond buybacks
The goal is clear — lower government borrowing costs as the U.S. national debt hits a record $37.5 trillion and stimulate housing markets by reducing mortgage rates.
Why This Matters for Crypto
Lowering long-term interest rates often weakens the U.S. dollar, which historically pushes investors toward Bitcoin, Ethereum, and other cryptocurrencies as alternative stores of value.
Christian Pusateri, founder of Mind Network, called the move “financial repression by another name” and warned that “the price of money is coming under tighter control because the balance between debt and GDP has become unstable.”
Crypto advocates see this as a massive opportunity. BitMEX founder Arthur Hayes even suggested that yield curve control could send Bitcoin to $1 million as investors rush to hedge against monetary debasement.
Bitcoin as a Hedge Against Monetary Policy
With the Fed potentially embracing this third mandate, Bitcoin and crypto assets could become more attractive as hedges against inflation and falling real yields. Analysts argue that YCC and money printing drive liquidity into risk assets, historically benefiting crypto markets.
If Trump’s plan gains traction, the next bull run for Bitcoin may arrive faster than expected — fueled not just by halving cycles but by monetary policy itself.
