BitMEX co-founder Arthur Hayes believes the Federal Reserve slashed interest rates by 50 basis points to boost Kamala Harris’ presidential campaign.
In a new Cointelegraph interview, Hayes says Fed Chair Jerome Powell and Treasury Secretary Janet Yellen are teaming up to increase the odds that Kamala Harris will take over the White House after the election.
“I have a macro view that Jay Powell and Janet Yellen want to juice financial markets to help Kamala Harris win the election and obviously this fits within that thesis. Because if you look at the US economy, it’s extremely strong.
GDP growth [for] the third quarter this year was about I think [around 2%] positive real growth. There’s still unemployment, it’s still quite low by historical standards.
Why is the Fed cutting rates? It seems like the current rate regime was perfectly fine with a growing US economy. So, what was so bad that they needed to cut 0.5% – the largest rate cut since March of 2020.
I believe they’re trying to get the markets to go even higher to make people feel even wealthier as they go into the ballot box in November.”
But the crypto veteran warns that the Fed’s aggressive rate cut comes at a cost, which Americans will feel after the election.
“Inflation is going to accelerate after this point because if people have been saying that the US government has been recklessly spending money, how does making it cheaper for them to borrow help that position?”
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