Arthur Hayes claims Scott Bessent plans Fed takeover to reindustrialize America

According to Arthur Hayes in his latest essay Four, Seven , Scott Bessent is ready to do what hasn’t been done since World War II; pull the Federal Reserve under the boot of the Treasury and reshape the ￰0￱ by ￰1￱ says that Scott wants to rip credit creation from the hands of the Fed and private equity and shove it into regional banks, then drown the financial system in new debt and money ￰2￱ says the goal is to stop America’s slide from a global empire to just another strong ￰3￱ in 1942, the Treasury made the Fed cap short-term yields at 0.675% and long-term ones at 2.5%. Arthur points out that the wartime yield curve was steeper than today’s flat or inverted ￰4￱ curve made it safe and profitable for small banks to ￰5￱ wants that ￰6￱ instead of using war as a reason, he’s using populism and political ￰7￱ plans to manipulate yields again, this time with modern tools, and drag America back into industrial dominance using what Arthur called “QE 4 Poor People.” Trump pushes Fed toward yield curve control The Fed doesn’t get to make every decision on its ￰8￱ boards run things: the Federal Reserve Board of Governors (FBOG) and the Federal Open Market Committee (FOMC).

Arthur explains the FBOG sets the interest on reserves (IORB) and discount window (DW) ￰9￱ FOMC controls SOMA, the actual mechanism for buying bonds with printed ￰10￱ now, the Fed isn’t playing ￰11￱ Trump is stacking the FBOG with loyalists ready to serve Scott’s ￰12￱ four of seven votes, Trump’s Fed governors can slash the interest on banking reserves (IORB), triggering an arbitrage flood where banks borrow at the discount window and lend at higher SOFR ￰13￱ bleeds the Fed until the FOMC caves and lowers the fed funds ￰14￱ once the Board controls who gets nominated as district bank presidents, they can approve only doves who’ll toe the ￰15￱ district bank presidents vote on the FOMC each year, and Arthur notes 2026 is a reset ￰16￱ FOMC’s rotating voting districts for 2026 are New York, Cleveland, Minneapolis, Dallas, and ￰17￱ points out that their boards are stacked with wealthy industrialists who would benefit from loose ￰18￱ they want a seat at the table, they’ll send candidates the Board will approve; those aligned with Scott’s push for more printing and easier ￰19￱ just three of four of those picks, plus New York and the four Trump-aligned FBOG votes, the FOMC is under ￰20￱ uses the Fed to flood the system with cheap debt With both boards under his thumb, Scott can flip the ￰21￱ FOMC uses SOMA to buy treasuries, capping long-term ￰22￱ Fed prints, buys, ￰23￱ lets the Treasury issue as much debt as it wants without driving up interest ￰24￱ says this kills the federal deficit and slashes interest expenses, but trashes the ￰25￱ dollars mean American manufacturers can export more, competing with China, Germany, and Japan in the Global ￰26￱ banks, now free from overregulation, lend to real factories, not to apps or stock ￰27￱ Trump’s Team Red facing midterms in 2026, control must be locked in ￰28￱ Democrats retake the Senate, they’ll block new ￰29￱ says this is the last window to get full Fed control.

That’s why the plan is moving now, not ￰30￱ then does the ￰31￱ now and 2028, the Treasury will need to issue $15.32 trillion in debt; $2 trillion in yearly deficits plus ￰32￱ COVID, the Fed bought 40% of new ￰33￱ expects 50% ￰34￱ says foreign central banks won’t touch this junk, knowing Trump plans to print ￰35￱ banks will pump out another $7.569 trillion in loans, based on the COVID period’s $2.523 trillion over three ￰36￱ puts total new credit at $15.229 ￰37￱ calculates that for every trillion of credit, Bitcoin rose 19% during ￰38￱ the same ratio, and Bitcoin hits $3.4 million by 2028. “Do I think Bitcoin will rise to $3.4 million by 2028? No,” Arthur says.

“But I believe the number will be markedly higher than the ~$115,000 that it trades at ￰39￱ goal is to get the direction of travel correct and be confident that I’m betting on the fastest horse, assuming that Trump is serious about printing trillions of dollars to achieve his policy ￰40￱ model does just that.” Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites