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Opinion: Trump may deliberately cause a stock market decline to prompt the Federal Reserve to cut interest rates

Opinion: Trump may deliberately cause a stock market decline to prompt the Federal Reserve to cut interest rates

Bitget2025/03/11 02:46

Cryptocurrency commentator Anthony Pompliano suggested in a social media post that the Trump administration may be deliberately creating stock market uncertainty to force Federal Reserve Chairman Powell to lower interest rates. Pompliano pointed out that this strategy might aim to reduce the difficulty of refinancing about $7 trillion in debt for the United States in the coming months.

He stated: "Trump and Treasury Secretary Scott Bessent are taking initiative, they are causing asset prices to fall, trying to force Powell to cut interest rates." At the end of January this year, despite Trump's call for rate cuts, Powell still announced that the Fed would maintain a target interest rate range of 4.25% - 4.5%. Pompliano believes that recent market panic is partly due to Trump's tariff policy, which is used to create a more favorable bond market environment while reducing yields on 10-year U.S. Treasuries.

He noted that yields on ten-year treasuries have fallen from nearly 4.8% in January to currently at 4.21%, indicating that Trump's so-called strategy is "moving in the right direction".

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