Fed Governor Stephen Miran on Friday suggested that surging demand for dollar-denominated stablecoins could help push U.S. interest rates lower.

In a speech delivered for an audience of economists in New York, the central bank official and appointee of President Donald Trump said the flood of crypto tokens pegged to the dollar could tamp down what economists refer to as "r-star," or the "neutral" rate of interest that neither pushes nor impedes growth.

If that happens, he said, the Fed might need to lower its own policy rate to avoid unintentionally slowing the economy.

"Stablecoins may become a multitrillion-dollar elephant in the room for central bankers," Miran said. "Stablecoins are already increasing demand for U.S. Treasury bills and other dollar-denominated liquid assets by purch

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