Arthur Hayes: Fed Probes Private Credit Risk, Print Money to Prop Up Market Expectations Rise

BlockBeats News, April 11th. According to Bloomberg, the Federal Reserve is reportedly conducting detailed inquiries with major banks about their risk exposure in the private lending sector, prompted by a surge in redemption volume in related funds and a continued rise in non-performing loans. The Treasury Department is also simultaneously questioning the insurance industry to fully assess the overall pressure on the $1.8 trillion private lending industry and the risk of its spread to the financial system.

BitMEX co-founder Arthur Hayes responded to this from a distance, saying, "I hope the scale is large enough so that we can have money printing to save the market." In other words, if this regulatory probe reveals systemic risks, it may pressure the Federal Reserve to restart easing and engage in large-scale liquidity injections, potentially benefiting the crypto market.