CDS Crypto News Arthur Hayes Suggests Fed Rate Cut Aimed at Strengthening Democratic Election Chances: Powell and Yellen May Be Boosting Markets for Political Gain
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Arthur Hayes Suggests Fed Rate Cut Aimed at Strengthening Democratic Election Chances: Powell and Yellen May Be Boosting Markets for Political Gain

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Arthur Hayes Suggests Fed Rate Cut Aimed at Strengthening Democratic Election Chances Powell and Yellen May Be Boosting Markets for Political Gain

Arthur Hayes Suggests Fed’s Rate Cut May Be Politically Driven to Boost Democratic Support

Arthur Hayes Suggests Fed's Rate Cut May Be Politically Driven to Boost Democratic Support

The recent rate cut by the US Federal Reserve, according to co-founder of BitMEX Arthur Hayes, was probably motivated by politics and might have an effect on markets and inflation. Speaking on September 18, Hayes discussed his thoughts on the Fed’s recent action and speculated that it might be a part of an attempt to strengthen support for the Democratic Party at Token2049 in Singapore.

I have a macro view that Jerome Powell (Federal Reserve chair) and Janet Yellen (Treasury secretary) want to juice financial markets to help Kamala Harris win the election.

Hayes

Hayes: Fed’s Rate Cut Could Drive Bitcoin Higher, But Inflation and Yen Pose Risks

Hayes: Fed's Rate Cut Could Drive Bitcoin Higher, But Inflation and Yen Pose Risks

The US Federal Reserve lowered interest rates by 50 basis points on September 18, a move that was highly anticipated by experts and investors. According to Hayes, this might have an enormous impact on the conventional and cryptocurrency markets, as well as possible long-term repercussions for inflation and financial stability. He contended that lowering the cost of borrowing for the government goes against worries about careless government expenditure.

I believe that they’re trying to get markets to go even higher, to make people feel even wealthier as they go into the ballot box in November, and inflation is going to accelerate after this point.

Hayes

Since the Fed’s pronouncement, the cryptocurrency markets have increased by $100 billion. Early trading on September 19 saw Bitcoin recover its three-week high of $62,500. Hayes stated in an X post that all eyes are now on the Bank of Japan, which is expected to decide on interest rates on Friday, Sept. 20. He predicted that a declining value of the Japanese yen would boost Bitcoin. But in the short run, he warned, the value of Bitcoin and other assets might be under pressure due to the stronger yen and the unwinding of yen carry trades.

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Arthur Hayes Suggests Fed Rate Cut Aimed at Strengthening Democratic Election Chances: Powell and Yellen May Be Boosting Markets for Political Gain
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Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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