- Arthur Hayes' Opinion on Rate Cut
- Impact on Traditional and Crypto Markets
- Forecasts and Future Actions
BitMEX co-founder Arthur Hayes believes the Federal Reserve's recent rate cut was likely politically motivated and could impact markets and inflation.
Arthur Hayes' Opinion on Rate Cut
Speaking to Cointelegraph at Token2049 in Singapore on September 18, Arthur Hayes shared his thoughts on the Fed's recent action, speculating it could be part of an effort to bolster support for the Democrats. Hayes stated that Jerome Powell and Janet Yellen want to juice financial markets to help Kamala Harris win the election. He noted that the rate cut of 50 basis points contradicts the current economic indicators such as strong GDP growth and low unemployment.
Impact on Traditional and Crypto Markets
Hayes also pointed out potential long-term consequences for inflation and economic stability. He highlighted that making borrowing cheaper for the government contradicts concerns about reckless government spending. On the crypto markets, this led to a 4% gain, which might be the calm before the storm. Hayes predicted a delayed reaction that could follow the close of traditional financial markets on Friday.
Forecasts and Future Actions
In a post on X on September 19, Hayes noted that all eyes are now on the Bank of Japan, which has a rate decision on September 20. He predicted that a weaker yen would result in a stronger Bitcoin, while a strengthening yen and unwinding of yen carry trades could put pressure on Bitcoin and other asset prices in the near term.
Arthur Hayes considers the Fed's rate cut a mistake that may have significant implications for inflation and markets, including cryptocurrencies. He continues to monitor the actions of the Bank of Japan and their potential impact on the crypto market.
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