Arthur Hayes said on X that raising interest rates can have a stimulative effect when government debt levels are high because bank reserve earnings rise and returns for holders of short-term Treasurys also increase. According to Odaily, he said this would encourage more spending, especially on financial assets.

He also said that although the Federal Reserve stopped RMP purchases in mid-August, total assets at the Fed and banks are still growing and creating money when bank balance-sheet expansion is included. Hayes added that as the money supply increases, financial assets will continue to rise even if the price of money increases.