Fed could print money to support US conflict with Iran, says Hayes
CoinTelegraph
by Martin YoungMarch 2, 2026
AI-Generated Deep Dive Summary
Arthur Hayes, co-founder of BitMEX and a prominent figure in the crypto community, has suggested that the U.S. Federal Reserve may ease its current hawkish monetary policy to finance the ongoing conflict with Iran. In a recent blog post, Hayes argued that prolonged military involvement in the Middle East, particularly under President Donald Trump’s administration, could lead the Fed to increase money supply and lower interest rates, as seen in previous conflicts since 1985. This potential shift in monetary policy could have significant implications for cryptocurrency markets, which often thrive during periods of increased liquidity and inflationary pressures.
Hayes highlighted historical precedents where U.S. military actions in the Middle East have correlated with Fed interventions to support national interests. He pointed out that each U.S. president since 1985 has engaged in costly military campaigns in the region, with the Fed responding by cutting rates and expanding money supply to fund these efforts. The current situation with Iran, he argued, is no different, with the cost of nation-building and regional influence likely prompting similar measures from the Fed.
For crypto enthusiasts, this could mean a potential boost in market activity as increased money supply often leads to higher inflation expectations, driving investors toward alternative assets like cryptocurrencies. Additionally, Hayes’ analysis underscores the interconnectedness of global economics, politics, and digital assets, emphasizing how geopolitical tensions can shape monetary policies that, in turn, influence the crypto markets. This perspective offers valuable insights for readers interested in both traditional finance and cryptocurrency, highlighting the broader economic forces at play in the current geopolitical landscape.
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Originally published on CoinTelegraph on 3/2/2026