BitMEX co-founder Arthur Hayes predicted that financial assets would continue to rise, even though the US Federal Reserve (Fed) Federal Open Market Committee (FOMC) implemented its first interest rate hike since 2023. He explained, "In a situation where US government debt is high, interest rate hikes can actually stimulate the economy and asset markets. Holders of US short-term Treasury bills (T-Bills) also earn higher returns. This leads to increased consumption and can particularly expand demand for financial assets." He added, "Although the Fed stopped asset purchases in mid-August, the combined assets of the Fed and banks continue to increase as bank balance sheets expand. This has the effect of increasing the money supply in the market. Since interest rates, the price of money, are rising, and the money supply in the market is also increasing, the prices of financial assets will continue to rise."
