Fed’s Secret Third Mandate: Dollar Down, Bitcoin Up? 🚀

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A “third mandate” from the US Federal Reserve could send shockwaves through the financial world, potentially causing the dollar to lose its luster while crypto enthusiasts dance a jig of joy. 🎩💰

President Trump’s appointee, Stephen Miran, recently unearthed this long-forgotten decree, sparking a frenzy of speculation. One might say the Fed’s founding documents were as revealing as a well-stocked library of secrets. 📚✨

The third mandate, a statutory requirement hidden in the Fed’s founding documents, stipulates that the central bank must pursue three lofty goals: maximum employment, price stability, and moderate long-term interest rates. A veritable trifecta of economic aspirations. 🎯

The Trump administration, ever the architect of bold moves, is poised to wield this forgotten statute as a wand to wave over bond markets, potentially unleashing yield curve control or expanded quantitative easing. A spectacle of monetary alchemy, if ever there was one. 🧙‍♂️💰

Lowering long-term interest rates

This third goal, long neglected, is now being resurrected by the Trump administration, who see it as a legal shield for their yield curve control ambitions. A move as audacious as a jester’s hat on a king’s head. 🦚👑

Trump, ever the advocate for lower rates, has criticized Fed governor Jerome Powell for his “slowness” or “lateness” in reducing them. A man with a vision, if not a penchant for patience. 🕰️

The administration’s arsenal includes increased Treasury bill issuance, bond buybacks, quantitative easing, or direct yield curve control. A veritable smorgasbord of financial maneuvers. 🍽️

Lower long-term rates would ease the burden of government borrowing, with national debt soaring to a record $37.5 trillion. A figure so large, it makes one’s head spin like a top in a tornado. 🌀

Positive impact on crypto

Christian Pusateri, founder of the Mind Network, calls this “financial repression by another name,” likening it to yield curve control. A term as enigmatic as a riddle wrapped in an enigma. 🧩

“The price of money is coming under tighter control because the age-old balance between capital and labor, between debt and GDP, has become unstable,” he said. A situation as precarious as a tightrope walker on a unicycle. 🎭

“Bitcoin stands to absorb massive capital as the preferred hedge against the global financial system.”

Arthur Hayes, the BitMEX founder, sees this as bullish for crypto, predicting Bitcoin could hit $1 million. A dream so grand, it could make a Victorian novel blush. 💸

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2025-09-17 09:30