Arthur Hayes argues new Fed liquidity tool “RMP” masks renewed money printing

Arthur Hayes, co-founder of BitMEX, argued in a Substack essay that the Federal Reserve's new "reserve management purchases" (RMP) program is essentially quantitative easing in disguise. He contends that by purchasing short-term Treasury bills and recycling liquidity, the Fed is financing government spending while avoiding the negative political perception associated with QE. Hayes believes this RMP is highly inflationary, expanding fiat liquidity and consequently favoring scarce assets such as Bitcoin, gold, and silver, which rise faster than fiat creation. Conversely, he warned that this currency debasement harms those without assets by eroding their purchasing power and wages. The context provided notes that the FOMC cut rates and announced these short-term Treasury purchases, which the Fed framed as purely technical to maintain ample reserves, despite Hayes's view that it represents renewed money printing.

(Source：Cointelegraph)