Hayes: Fed could ease policy to finance Iran conflict, boosting crypto

BitMEX co-founder Arthur Hayes said the US Federal Reserve could ease its hawkish monetary policy to help finance the country's conflict with Iran, a move he expects would boost crypto markets. In a blog post he argued every US president since 1985 has launched military action in the Middle East, and each time the Fed has responded by cutting rates and expanding the money supply.

He cited the Gulf War in 1990, the global war on terrorism after the Sept. 11 attacks in 2001, and the so-called “surge” in Afghanistan in 2009 as prior examples. Over the weekend, Israel and the US initiated a series of airstrikes on Iran that killed the country's supreme leader, Ali Khamenei, which President Donald Trump has pledged to continue.

United States, Middle East

arthur hayes, federal reserve, monetary policy, iran conflict, crypto markets, bitmex, interest rates, money supply, ali khamenei, donald trump