Market commentators say the Trump administration may intentionally create uncertainty in the stock market, adjusting Federal Reserve Chairman Jerome Powell to cut interest rates.
By doing so, it’s more likely that the US will not have to refinance about $7 trillion in debt in the coming months, Bitcoin commentator Anthony Pipriano said in the X-Post on March 10.
“The issues are put into their hands,” said U.S. President Donald Trump and Treasury Department’s Secretary, Pompliano, founder and CEO of Professional Capital Management and host of Pomp Podcasts.
The president and his team are intentionally crashing the market.
Is this a master plan or are you looking at uncontrolled destruction? ! pic.twitter.com/tbc0m9rjxu
– Anthony PomplianošŖ (@apultriano) March 10, 2025
In late January, Powell announced that the Fed has not cut interest rates from its current target range of 4.25%, despite a call from Trump.
Pompliano said recent market panic has been attributed in part to Trump’s tariffs and is being used to create a more lucrative bond market while lowering Treasury yields for 10 years.
He noted that the Treasury yield in 2010 has already fallen to 4.21% from nearly 4.8% in January. This is a sign that Trump’s strategy is “directing in the right direction.”
Source: Thomas Kralow
Whether Pompliano’s theory is correct or not, the stock market is a recent tanking, and Crypto has been hit harder.
A wide range of market index funds, such as the Standard & Poor’s 500 Index Fund (SPY), fell 2.66% on March 10 alone, with NASDAQ-100% falling 3.8%, Google Finance data shows.
Both indexes fell 10.7% to 7.32% last month, while Bitcoin (BTC) fell 27.4% from an all-time high of $108,786, and since December 17th it was wiped out of cryptocurrency market capitalization.
If the stock market continues its tanks, it will come down to a “who will flash first” contest between Trump and Powell, Pipriano said.
Trump has not confirmed such a strategy, but Priano pointed to an interview with Fox News on March 9th. Trump said:
Pulliano added that lowering interest rates would also benefit American consumers.
“The big goal is to lower interest rates and access to cheaper capital, which leads to more economic activity. If you give people a cheaper capital, they will use it to do things.”
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CME FedWatch is a tool used to measure the Federal Reserve’s expectations for rate changes, and following the next meeting of the Federal Reserve on March 19, it tilted the 96% chance that the target rate would remain between 4.25% and 4.50%.
However, the target rate will be reduced at the May 7th Federal Reserve meeting, close to odds of 50-50.
Typically, the Federal Reserve avoids lowering interest rates when inflation is high. One of its main objectives is to maintain price stability.
But the recession that affected Trump, or “Trump’s opinion,” could force America’s top banks to start cutting again, as some would call it.
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