Arthur Hayes Predicts Trump Influencing Fed Policy to Boost Bitcoin

Arthur Hayes, co-founder of BitMEX, predicts a scenario where Donald Trump's potential second term could transform US monetary policy, significantly impacting Bitcoin.

Hayes envisions a Trump administration taking direct control over the Federal Reserve to re-industrialize the economy and manage national debt.
This would involve altering the Fed's Board of Governors to secure a voting majority by early 2026.
The administration could influence regional Fed bank presidents, creating a dominant voting bloc on the FOMC.
The goal is to implement Yield Curve Control to cap interest rates, financing economic initiatives similar to strategies used in WWII.
This policy would focus on lending to SMEs, contrasting post-2008 quantitative easing that benefited large corporations.
The strategy may lead to significant dollar debasement, prompting investors to turn to assets with fixed supply like Bitcoin.
Hayes speculates a Bitcoin price of $3.4 million by 2028 based on credit growth models, although he acknowledges this is speculative.
His scenario faces potential political and legal challenges due to its implications for the Federal Reserve's independence.