Fed Rate Cuts 'Politically Motivated,' Says BitMEX Co-Founder Arthur Hayes
CryptoNewsTerminal Staff19 Sep, 2024
Fed Rate Cuts 'Politically Motivated,' Says BitMEX Co-Founder Arthur Hayes
The United States Federal Reserve's decision to cut interest rates was "likely politically motivated" to increase the Democratic party’s approval ratings, BitMEX co-founder Arthur Hayes told Cointelegraph. “The Fed is trying to reflate the markets so that voters feel wealthier going into the November polls,” he said, adding that he expects this to lead to higher inflation down the road. “The impact of the rate cut is likely to be delayed somewhat in crypto markets, but after the traditional finance (TradFi) markets have reacted on Friday, we could see a response over the weekend. The focus is now on the Bank of Japan meeting on the 20th. If they deliver a dovish surprise on the yen, it will be bullish for Bitcoin.”
