Fed’s Miran Sounds Alarm: ’Restrictive’ Rates Threaten Economic Meltdown
Federal Reserve official Miran drops recession bombshell as restrictive interest rates choke economic growth.
The Warning Shot
Miran's stark assessment cuts through typical Fed-speak—high rates aren't just cooling inflation, they're actively strangling economic activity. The central bank's medicine might be killing the patient.
Rate Hammer Falls
Restrictive policy settings bypass gradual economic adjustment for sudden contraction. Businesses can't breathe under current borrowing costs—investment freezes, expansion plans shelved, hiring slams into reverse.
Traditional Finance's Blind Spot
While mainstream markets panic about rate-induced recession, crypto markets demonstrate their decoupling narrative—digital assets don't wait for Fed permission slips to find value. Another case of legacy finance fighting yesterday's battles while tomorrow's economy builds without them.
The Fed's playing with economic nitroglycerin while digital gold sits patiently in vaults waiting for the inevitable monetary reset.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“The Fed is too restrictive, neutral is quite a ways below where current policy is,” Miran said in an interview with Bloomberg on Monday.
Miran Issues Recession Warning
Last week, Miran cautioned that keeping rates too high for too long could run the risk of creating a recession in an interview with The New York Times. In addition, Miran voiced his support for a 25 bps cut at the December FOMC meeting, despite Fed Chair Jerome Powell saying that the scenario was far from a “foregone conclusion.”
One more rate cut by year-end is the likely scenario, with CME’s FedWatch tool assigning 70.3% odds of another rate cut and 29.7% odds of an unchanged rate.
