According to BlockBeats, on September 19, CoinDesk reported that BitMEX co-founder Arthur Hayes believes that overall interest rate cuts are not necessary. Although a 50 basis point interest rate cut will trigger a short-term market rebound, it will eventually expose deeper problems in the global financial system, leading to further price declines.
“At a high level, I don’t think they should raise interest rates,” said Arthur Hayes. “I believe the U.S. economy is pretty strong. If you look at the GDP data over the last eight or nine quarters, growth has been solid, and if they decide to continue to cut rates, inflation will accelerate in the fourth quarter.”
Arthur Hayes believes that the huge spending by the US government is driving rapid economic growth, which is good for Harris’s election chances, but cutting interest rates in the face of high inflation is seen as a mistake. If the market starts to decline, they may continue to cut interest rates, which will only make the problem worse.
