Fed could print money to support US conflict with Iran, says Hayes

Arthur Hayes says the longer Donald Trump engages in expensive “Iranian nation-building,” the more likely it is that the Federal Reserve will boost money supply.

The US Federal Reserve could ease its hawkish monetary policy to help finance the country’s conflict with Iran, which would boost crypto markets, says BitMEX co-founder Arthur Hayes.

Hayes said in a blog post on Monday that every US president since 1985 has launched military action in the Middle East, and each time, the Federal Reserve has responded by cutting rates and expanding the money supply to finance the conflict.

“The longer Trump engages in the extremely costly activity of Iranian nation-building, the higher the likelihood that the Fed lowers the price and increases the quantity of money to support Pax Americana’s latest bout of Middle Eastern adventurism,” he added.

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