Arthur Hayes: 'Plentiful Filthy Fiat Money' Could Stimulate The Economy Ahead Of November Election

Cryptocurrency industry veteran and BitMEX co-founder Arthur Hayes on Wednesday suggested that the Federal Reserve’s upcoming monetary policy decisions could be strategically aligned with the November U.S. presidential election.

What Happened: Hayes argues that the incumbent Democrats may leverage monetary policy to stimulate the stock market in the run-up to the polls.

“When politics precedes economics, I become more confident in my predictions,” Hayes stated in his blog post. “That is because of Newtonian Political Physics – a politician in power wishes to stay in power. They will do whatever is necessary, regardless of the economic conditions, to get re-elected.”

Hayes contends that despite relatively strong economic indicators, Federal Reserve Chair Jerome Powell has signaled a willingness to cut interest rates.

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This move, according to Hayes, is not necessarily driven by economic necessity but could be influenced by political considerations.

“The economy shall not want for cheap and plentiful filthy fiat money,” Hayes provocatively remarked, suggesting that the Fed’s actions might be aimed at maintaining a bullish stock market sentiment as the election approaches.

The analysis points to several factors that could contribute to favorable liquidity conditions in the financial markets, including global central banks reducing the price of money, U.S. Treasury actions to increase dollar liquidity, and the potential use of the Treasury General Account to “juice markets.”

In a previous blog post, Hayes suggested that Bitcoin BTC/USD could reach $100,000 due to monetary stimulus by the Federal Reserve.

As the financial world grapples with these potential market-moving factors, industry leaders and experts are set to convene at Benzinga’s Future of Digital Assets event on Nov. 19.

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