Pompliano suggests Trump may be crashing markets to lower rates

Anthony Pompliano, a prominent Bitcoin (CRYPTO:BTC) commentator, has speculated that U.S. President Donald Trump could be deliberately creating market uncertainty to pressure Federal Reserve Chair Jerome Powell into lowering interest rates.

In a March 10 post, Pompliano argued that such a strategy might help the U.S. avoid refinancing approximately $7 trillion in debt over the coming months.

Pompliano suggested that recent market turbulence, including a 2.66% drop in the S&P 500 and a 3.8% decline in the Nasdaq on March 10, was partly driven by Trump’s tariff policies.

These actions, he claimed, have contributed to the 10-year Treasury yield falling from 4.8% in January to 4.21%, which aligns with Trump’s purported goal of creating favorable bond market conditions.

Although Trump has not confirmed this strategy, his recent remarks provide some context.

“Nobody ever gets rich when the interest rates are high because people can’t borrow money,” Trump stated, in a March 9 interview with Fox News.

This aligns with his longstanding calls for lower interest rates to stimulate economic activity.

Critics argue that such tactics could undermine the Federal Reserve’s independence and risk long-term economic stability.

The Fed has maintained its target interest rate range of 4.25% to 4.5%, despite Trump’s calls for reductions.

CME FedWatch data indicates a 96% probability that rates will remain unchanged at the Fed’s next meeting on March 19, though there is near-even speculation about potential cuts in May.

The broader financial markets have also felt the impact of this uncertainty.

Bitcoin has declined by 27.4% from its all-time high of $108,786 in December, while over $1.2 trillion has been wiped from the cryptocurrency market cap since then.

Pompliano framed the situation as a standoff between Trump and Powell, stating it could become a “who blinks first” scenario if market conditions worsen further.

While lowering interest rates might provide short-term relief for borrowers and spur economic activity, critics warn it could lead to inflationary pressures and erode confidence in U.S. monetary policy over time.