Fed’s ‘third mandate’ may devalue dollar, send crypto soaring
Donald Trump’s latest Fed pick cited a “third mandate” for the bank to moderate long-term rates, potentially justifying yield curve control policies, which could boost Bitcoin.
A “third mandate” from the US Federal Reserve could change long-term monetary policy if actioned, which could be bad news for the dollar but good news for crypto.
The Fed has long been considered to have a dual mandate — price stability and maximum employment — but President Donald Trump’s pick for Fed governor, Stephen Miran, cited a “third mandate” earlier this month, sparking speculation on the future of central bank monetary policy.
The third mandate is a statutory requirement buried in the Fed’s founding documents, which states that the central bank actually requires three objectives: maximum employment, price stability and moderate long-term interest rates.