Is Trump Crashing Markets to Force Rate Cuts? Pompliano Thinks So
Bitcoin advocate and investor Anthony Pompliano claims that U.S. President Donald Trump may be deliberately tanking markets to pressure the Federal Reserve into lowering interest rates.
In a post on X dated March 10, Pompliano speculated that Trump and Treasury Secretary Scott Bessent are executing a plan to trigger a rate cut — one that could help the U.S. avoid refinancing $7 trillion in national debt.
“They’re crashing asset prices in an attempt to force Jerome Powell to cut interest rates,” said Pompliano, CEO of Professional Capital Management and host of The Pomp Podcast.
Trump vs Powell: Who Blinks First?
Back in January, Federal Reserve Chair Jerome Powell held rates steady between 4.25% and 4.5%, despite pressure from Trump.
Since then, a combination of Trump-era tariffs and mounting market volatility has led to a significant shift in the bond market:
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The 10-year Treasury yield dropped from nearly 4.8% in January to 4.21%, a move Pompliano sees as a sign the strategy is “working.”
Trump reinforced his low-rate position in a March 9 Fox News interview, stating:
“Nobody ever gets rich when interest rates are high because people can’t borrow money.”
Markets React: Stocks Slide, Crypto Crashes
The broader markets have been sliding fast:
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S&P 500 (SPY) dropped 2.66% on March 10
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Nasdaq-100 fell 3.8%
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Bitcoin (BTC) is down 27.4% from its all-time high of $108,786
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Over $1.2 trillion has been wiped from crypto’s market cap since Dec. 17
Pompliano framed the current conditions as a game of economic chicken between Trump and Powell, stating it may come down to who blinks first.
Is a “Trumpcession” Looming?
A rate cut might benefit consumers by providing cheap capital, according to Pompliano, but some observers are warning about the cost: a politically induced recession — or what some are calling a “Trumpcession.”
Currently, the CME FedWatch Tool gives a 96% probability that the Fed holds rates steady at its next meeting on March 19.
However, the outlook for May 7 is far more uncertain, with odds near 50-50 for a potential rate cut — especially if economic pressure increases.
Final Take
Trump may be using market chaos to strong-arm the Fed into easing monetary policy. Whether it’s a brilliant strategy or an economic gamble remains to be seen — but the impact on crypto, equities, and the bond market is already being felt.