Arthur Hayes believes the U.S. Federal Reserve is preparing to adopt yield curve control, a policy where the central bank fixes interest rates on government bonds by purchasing unlimited amounts of debt.

“Yield curve control is when a central bank fixes the rate on a government bond,” Hayes said in an interview with TheStreet Roundtable’s Alp Gasimov.

“They expand their balance sheet by purchasing government bonds until such time as the price of the bond rises, the yields fall to whatever the level is they decide.”

He pointed to the Bank of Japan, which has used the approach for nearly two decades. “The Bank of Japan’s balance sheet swells with Japanese government bonds such that the rates are capped at whatever level they cap them at,” he said.

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Arthur Hayes is the co-founder and former CEO of BitMEX, one of the world’s first major cryptocurrency derivatives exchanges. A former equities trader at Deutsche Bank and Citigroup, he is known for his bold market commentary and macroeconomic insights. Hayes now writes extensively on crypto and global finance through his blog, Crypto Trader Digest.

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Hayes said the Federal Reserve is “telegraphing” a similar move through recent comments from officials about a so-called third mandate in the 1913 Federal Reserve Act. The clause, he explained, instructs the Fed to ensure that “government bond levels are at a moderate level.”

“What does that mean? Whatever they want it to mean,” Hayes said.

“Trump wants cheap money, plentiful money, to revitalize America and he wants government bond yields lowered and capped using printed money at the Federal Reserve.”

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Hayes said the policy would likely push Bitcoin and other digital assets higher. “Crypto does well when credit expands,” he said. “If there’s more fiat credit units in the world, then the price of Bitcoin and other crypto assets in these fiat currencies goes up in value.”

“So we love money printing,” he added, “because it means numbers go up.”

Hayes compared the coming cycle to 2008, when the Fed’s quantitative easing sparked a wave of liquidity and a major Bitcoin rally in the years that followed.

“If the Fed is printing money doing yield curve control and the balance sheet is going to expand just like it did starting in 2008 after the global financial crisis, we’re in for another wild ride to the upside for Bitcoin,” he said.

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Hayes’s comments tie into his long-held forecast that Bitcoin could reach $1 million as global liquidity expands.

While many dismissed six-figure targets in past cycles, he said this time could be different as monetary easing returns in force.

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This story was originally reported by TheStreet on Oct 9, 2025, where it first appeared in the Federal Reserve & FOMC News section. Add TheStreet as a Preferred Source by clicking here.