Key Takeaways:
- A revived focus on the Fed’s third mandate – moderate long-term interest rates – could justify more aggressive monetary tools like yield curve control.
- Such policies may weaken the U.S. dollar, potentially boosting inflation-hedged assets like Bitcoin and other cryptocurrencies.
- Critics argue this approach risks tighter control over capital markets, raising concerns over financial repression and monetary independence.
The Federal Reserve’s rarely acknowledged “third mandate” is resurfacing in U.S. policy discussions, with potential implications for the dollar and crypto markets.
Traditionally, the Fed has operated under its dual mandate of ensuring price stability and maintaining maximum employment.
Third Mandate: pic.twitter.com/mJlEMPx1CP
— Menthor Q (@MenthorQpro) September 16, 2025
However, Stephen Miran, President Donald Trump’s nominee for the Fed Board, highlighted a lesser-known provision from the 1913 Federal Reserve Act: the pursuit of “moderate long-term interest rates.”
Analysts suggest this mandate could justify more aggressive monetary measures such as yield curve control (YCC), expanded bond purchases, or new rounds of quantitative easing (QE).
By directly targeting long-dated bond yields, the Fed could weaken the U.S. dollar, reduce government borrowing costs, and stimulate mortgage lending.
With federal debt nearing $37.5 trillion, such policies would also ease fiscal pressures.
Critics warn this amounts to “financial repression”, while others, including BitMEX co-founder Arthur Hayes, see it as bullish for crypto assets that thrive on currency debasement fears.
With Fed board member Miran now confirmed, the MSM is preparing the world for the Fed's "third mandate" which is essentially yield curve control. LFG!
— Arthur Hayes (@CryptoHayes) September 16, 2025
YCC -> $BTC = $1m pic.twitter.com/jlPQZJ0cHm
As the administration elevates this third mandate, markets are watching for signs of deeper Fed intervention, raising questions about inflation, monetary independence, and the growing role of alternative assets like Bitcoin.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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