{"id":124801,"date":"2025-03-11T02:15:55","date_gmt":"2025-03-11T02:15:55","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=124801"},"modified":"2025-03-11T02:15:55","modified_gmt":"2025-03-11T02:15:55","slug":"pomps-theory-trump-deliberately-crashed-markets-to-get-interest-rates-down","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=124801","title":{"rendered":"Pomp\u2019s theory: Trump deliberately crashed markets to get interest rates down"},"content":{"rendered":"

Source: Cointelegraph.com NewsThe Trump administration may be intentionally creating uncertainty in the stock markets to corner Federal Reserve chair Jerome Powell into lowering interest rates, according to a market commentator.\u00a0
\nDoing so increases the likelihood that the US won\u2019t need to refinance around $7 trillion in debt it owes over the next few months, Bitcoin commentator Anthony Pompliano said in a March 10 X post.
\nUS President Donald Trump and Secretary of the Treasury Scott Bessent are \u201ctaking matters into their own hands; they\u2019re crashing asset prices in an attempt to force Jerome Powell to cut interest rates,\u201d said Pompliano, who serves as the founder and CEO of Professional Capital Management and host of The Pomp Podcast.
\nIn late January, Powell announced the Fed was not lowering interest rates from the current target range of 4.25% to 4.5% despite calls from Trump to do so.
\nPompliano said the recent market panic has been driven in part by Trump\u2019s tariffs \u2014 and has been used to create a more favorable bond market while lowering the 10-year Treasury yield.
\nHe noted that the 10-year Treasury yield is already down from nearly 4.8% in January to 4.21% now \u2014 a sign that Trump\u2019s purported strategy is \u201cheading in the right direction.\u201d
\nSource: Thomas KralowWhether Pompliano\u2019s theory is correct or not, the stock market has been tanking of late, and crypto has been hit even harder.
\nBroad market index funds such as State Street\u2019s Standard & Poor\u2019s 500 index fund (SPY) fell 2.66% on March 10 alone, while the Nasdaq-100% fell 3.8%, Google Finance data shows.
\nBoth indexes are down 7.32% and 10.7% over the last month, while Bitcoin (BTC) is down 27.4% from its $108,786 all-time high, and over $1.2 trillion has been wiped from the cryptocurrency market cap since Dec. 17.
\nIf the stock market continues to tank, it will come down to a \u201cwho blinks first\u201d contest between Trump and Powell, Pompliano said.
\nWhile Trump hasn\u2019t confirmed such a strategy, Pompliano pointed to a Fox News interview on March 9 where Trump said: \u201cNobody ever gets rich when the interest rates are high because people can\u2019t borrow money.\u201d
\nPompliano added that lowering interest rates would also benefit American consumers:
\n\u201cThe big goal, get interest rates down, and that will lead to more economic activity, thanks to access to cheap capital. Give the people cheap capital and they\u2019ll go and do things with it.\u201d
\nRelated: Bitcoin dips to $80K in \u2018ugly start,\u2019 could retest key resistance: Hayes
\nCME FedWatch, a tool used to measure expectations for a Federal Reserve interest rate change, has tipped a 96% probability that the target rate will remain between 4.25% and 4.50% following the Federal Reserve\u2019s next meeting on March 19.\u00a0
\nHowever, it\u2019s near 50-50 odds for the target rate to be lowered in the Federal Reserve\u2019s following meeting on May 7.
\nThe Federal Reserve typically avoids lowering interest rates when inflation is high, as one of its primary objectives is to maintain price stability.
\nHowever, a Trump-inflicted recession, or \u201cTrumpcession,\u201d as some call it, could force America\u2019s top bank to start cutting again.
\nMagazine: Meet lawyer Max Burwick \u2014 \u2018The ambulance chaser of crypto\u2019Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsThe Trump administration may be intentionally creating uncertainty in the stock markets to corner Federal Reserve chair Jerome Powell into lowering interest rates, according to a market commentator.\u00a0… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124801"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=124801"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124801\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=124801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=124801"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=124801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}