YEREVAN (CoinChapter.com) — Market analyst Anthony Pompliano suggested President Donald Trump might have intentionally caused the recent market crash. In a March 10 post on X, Pompliano stated Trump wanted to push Federal Reserve Chair Jerome Powell into lowering interest rates.
Pompliano, CEO of Professional Capital Management and host of The Pomp Podcast, wrote:
“They’re crashing asset prices in an attempt to force Jerome Powell to cut interest rates.”
Trump has publicly advocated for lower interest rates multiple times.
Pompliano: Trump’s Tariffs Influence 10-year Treasury Yield
Pompliano explained Trump’s tariffs increased uncertainty, affecting the 10-year Treasury yield. In January, the 10-year Treasury yield was approximately 4.8%. By March 10, it dropped to 4.21%.
This lower yield means reduced borrowing costs, aligning with Trump’s preference for lower interest rates.
Trump Publicly Supports Cutting Interest Rates
In late January, Jerome Powell confirmed the Federal Reserve would maintain interest rates between 4.25% and 4.5%. Despite Trump’s repeated public demands, the Federal Reserve has not reduced rates recently.
On March 9, Trump spoke clearly about high interest rates on Fox News:
“Nobody ever gets rich when the interest rates are high because people can’t borrow money.”
Pompliano cited this statement to support his claim about the Trump market crash.
Stock Market and Bitcoin Price Experience Sharp Declines
Unquestionably, the recent stock market decline was significant. On March 10, State Street’s Standard & Poor’s 500 index (SPY) dropped 2.66%. The Nasdaq-100 fell even further, down 3.8% the same day.
Over the past month, SPY fell 7.32%, while the Nasdaq-100 declined 10.7%.
The cryptocurrency market was impacted heavily. Bitcoin price fell 27.4%, dropping from an all-time high of $108,786 to around $76. Since Dec․ 17, more than $1.2 trillion vanished from cryptocurrency market values.
CME FedWatch Shows Stability in Interest Rates for March
The CME FedWatch tool tracks expectations for the Federal Reserve to change interest rates. Currently, it indicates a 96% probability that the Fed will keep rates unchanged at 4.25% to 4.50% in the next meeting on March 19.
For the subsequent meeting on May 7, CME FedWatch data suggests nearly a 50% chance of an interest rate cut.
Usually, the Federal Reserve avoids lowering rates when inflation is high to maintain price stability.
Possible Trump Recession Could Pressure Federal Reserve
Some analysts now discuss a potential “Trump recession,” referring to economic downturns linked to Trump’s decisions. If a “Trump recession” occurs, it could pressure the Federal Reserve to reconsider its stance on interest rates.
In addition, Pompliano highlighted lower interest rates would encourage economic activity by providing cheaper loans:
“Get interest rates down, and that will lead to more economic activity, thanks to access to cheap capital.”
Overall, the situation remains closely monitored as market developments continue.
