Stablecoin

Source

Tether USDt

Reserve

would

<div class="key-points-section"><strong>Key Points:</strong>
 <ul>
  <li>Fed's Milan links stablecoins to lower interest rates and economic impacts.</li>
  <li>Miran calls for rapid rate cuts amid stablecoin influence.</li>
  <li>Stablecoin growth boosts the demand for U.S. Treasuries globally.</li>
 </ul>
</div>
<p>Federal Reserve Governor Stephen Miran highlighted the potential impact of stablecoins on interest rates during a November 8th event, urging policy rate cuts to avoid economic contraction.</p>
<p>Miran's comments indicate stablecoin growth could depress neutral rates, necessitating policy adjustments to maintain economic stability.</p>
<h2 id="fed-policy-adjustments-linked-to-stablecoin-expansion">Fed Policy Adjustments Linked to Stablecoin Expansion</h2>
<p><strong>Federal Reserve Board Governor Stephen Miran</strong> discussed how <strong>stablecoin issuance</strong> could significantly affect the economy's neutral interest rate at the recent Summit. This would necessitate aligning the policy rate with the lower neutral rate to prevent contraction.</p>
<p>Miran highlighted that <strong>stablecoin growth</strong> leads to an increased supply of lendable funds, lowering borrowing costs for the government. Failure to adjust interest rates could cause economic tightening pressures.</p>
<blockquote>
 "Even relatively conservative estimates of stablecoin growth imply an increase in the net supply of loanable funds in the economy that pushes down the economy’s neutral rate... If R-star is lower, policy rates should also be lower than they would otherwise be to support a healthy economy... a failure of the central bank to cut rates in response... is contractionary." — Stephen Miran, Federal Reserve Board Governor <a href="https://www.thestar.com.my/tech/tech-news/2025/11/08/fed039s-miran-stablecoin-adoption-could-put-downward-pressure-on-interest-rates" rel="noopener noreferrer nofollow">Source</a>
</blockquote>
<p><strong>Few notable responses emerged,</strong> with no direct reactions from major crypto leaders. However, the statement stirred interest in how stablecoins can integrate into existing financial systems, potentially reshaping monetary policy decisions globally.</p>
<h2 id="stablecoins-and-u-s-treasury-demand-surge">Stablecoins and U.S. Treasury Demand Surge</h2>
<p style="background-color: #222222; color: #ffffff; padding: 10px; border-radius: 5px;"><strong>Did you know?</strong> Even conservative growth estimates of stablecoins could draw parallels to the "global savings glut" period, which significantly lowered U.S. long-term interest rates before the financial crisis.</p>
<p><a href="https://phemex.com/markets" rel="noopener noreferrer nofollow">Tether USDt</a> currently holds a price of $1.00 as reported by CoinMarketCap. With a market cap of <strong>$183.40 billion</strong>, Tether's daily trading volume soared to <strong>$169.86 billion</strong>. The price has been stable, with minimal fluctuations over the past 90 days, demonstrating its steady market presence.</p>
<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2025/11/Tether-USDt-daily-chart-on-0017-UTC-on-November-8-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/11/Tether-USDt-daily-chart-on-0017-UTC-on-November-8-2025file.jpeg" alt="tether-usdt-daily-chart-361"> </a>
 <figcaption>
  Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 00:17 UTC on November 8, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/tether/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
 </figcaption>
</figure>
<p><strong>Coincu research</strong> indicates that stablecoin growth could reshape traditional finance, particularly boosting <strong><a href="https://coincu.com/news/pboc-stablecoins-risks-discussion/" rel="noopener noreferrer nofollow">U.S. Treasury demand</a></strong> as regulatory frameworks evolve, stablecoin liquidity might integrate more deeply within traditional networks, enhancing economic resilience.</p>
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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</figure> <a href="https://coincu.com/uncategorized/stablecoin-fed-interest-rate/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Stablecoin Growth May Alter Fed's Interest Rate Approach

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