The U.S. Federal Reserve has long been recognized for its dual mandate — maintaining price stability and maximizing employment.
However, a lesser-known statutory requirement has re-emerged, raising questions about the direction of future monetary policy and its impact on both the dollar and cryptocurrency markets.
Earlier this month, President Donald Trump’s pick for Fed governor, Stephen Miran, referred to a “third mandate,” sparking speculation over how the central bank may wield its authority moving forward.
This overlooked directive, buried within the Federal Reserve Act of 1913, outlines three core objectives: price stability, maximum employment, and moderate long-term interest rates.
Trump administration eyes yield curve control
For decades, the third mandate has been treated as a natural outcome of achieving the first two goals, rather than an independent policy driver.
But Trump officials appear prepared to use it as a legal foundation for more direct intervention in financial markets.
Bloomberg reported that the administration may use the requirement to justify yield curve control or expanded quantitative easing.
This would mean the Fed actively purchasing government bonds to keep borrowing costs at specific levels, an approach designed to push down long-term interest rates.
Trump has long criticized the Fed for being too slow in lowering rates, at times calling Chair Jerome Powell “too slow” or “too late.”
With the national debt climbing to $37.5 trillion, suppressing borrowing costs is becoming an urgent priority for the administration.
Lower mortgage rates could also stimulate housing demand, offering a political and economic boost.
Critics warn of financial repression
Not everyone sees the third mandate as benign.
Christian Pusateri, founder of encryption protocol Mind Network, characterized the policy shift as “financial repression by another name.”
He argued that yield curve control reflects deeper structural imbalances in the global economy.
“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,” Pusateri said.
He believes Bitcoin could be one of the biggest beneficiaries.
“Bitcoin stands to absorb massive capital as the preferred hedge against the global financial system,” he added.
Bitcoin as the ultimate hedge
Crypto advocates argue that suppressing long-term rates could erode confidence in the dollar and make scarce digital assets more attractive.
Arthur Hayes, the outspoken founder of BitMEX, suggested such policies could eventually push Bitcoin’s price to $1 million.
While the prospect of yield curve control remains uncertain, the renewed spotlight on the Fed’s “forgotten” mandate underscores how monetary policy debates are increasingly tied to the fortunes of digital assets.
For crypto investors, the message is clear: a shift in U.S. central bank policy could serve as a powerful tailwind for the sector.