Arthur Hayes: The BTFP plan prints $4.4 trillion, and the Federal Reserve is about to reverse the tightening cycle

ChainCatcher news, BitMEX founder Arthur Hayes stated: "The Federal Reserve's Bank Term Funding Program (BTFP) is a form of quantitative easing that amounts to $4.4 trillion, even exceeding the $4.189 trillion printed to address the COVID crisis. Although the BTFP program is stipulated to last only one year, it is almost certain that this program will be preemptively extended.

As the market begins to price in deflation, it is expected that the Federal Reserve will either start cutting interest rates at the upcoming March meeting or a severe economic recession a few months later will force it to pivot. Since the outbreak of the banking crisis, the yield on the 2-year Treasury note has fallen by more than 100 basis points. The market is loudly calling for deflation supported by the banking system, and the Federal Reserve will ultimately listen. In this banking crisis, cryptocurrency has once again proven to be the smoke alarm for the stinky, wasteful, fiat-driven Western financial system." (source link)