Arthur Hayes: Interest rate hikes increase money supply, financial asset prices will continue to rise

Arthur Hayes said on the X platform that interest rate hikes have a stimulating effect when the government debt level is high, and the increase of bank reserve income and short-term treasury bond bond income will promote the consumption of financial assets. Although the Federal Reserve stopped RMP purchases in mid August, the total assets of the Federal Reserve and banks continue to grow and create money, taking into account the expansion of bank balance sheets. As the quantity of currency increases, the prices of financial assets will continue to rise.