Svmuu reported that at the Bitcoin 2026 conference, Arthur Hayes stated that he is more focused on the stance of Federal Reserve Chair nominee Kevin Warsh regarding the balance sheet than on the direction of short-term interest rates, as this will impact U.S. dollar liquidity and the pricing of risk assets such as Bitcoin.
Hayes believes that market expectations of Warsh being “hawkish” may be overinterpreted. He expects the Fed is more likely to adjust liquidity through methods such as asset swaps, without weakening the U.S. Treasury's debt issuance capacity.