BitMEX co-founder Arthur Hayes has stated in a recent interview with Cointelegraph that he believes the Federal Reserve’s decision to cut interest rates by 50 basis points was motivated by a desire to boost Kamala Harris’ presidential campaign. Hayes suggests that Fed Chair Jerome Powell and Treasury Secretary Janet Yellen are working together to increase the chances of Harris becoming the next White House occupant.

Hayes explains his theory by highlighting the strength of the US economy, with positive GDP growth in the third quarter and low unemployment rates. He questions why the Fed felt the need to cut rates when the economy was already performing well. He believes that the Fed’s goal is to further boost financial markets and make voters feel wealthier before they cast their ballots in November.

However, Hayes also warns that the aggressive rate cut comes with consequences. He predicts that inflation will accelerate as a result, and questions how making borrowing cheaper will help the US government’s already reckless spending habits.

While Hayes’ theory may be speculative, it raises important questions about the motivations behind the Fed’s actions and the potential long-term impact on the economy.