Analysis: Trump deliberately crashes the market to force the Federal Reserve to cut interest rates
ChainCatcher news, according to Cointelegraph, crypto analyst Anthony Pompliano (Pomp) has proposed a bold theory: the Trump administration may intentionally be creating chaos in the stock market to force the Federal Reserve to cut interest rates, in order to avoid refinancing about $7 trillion in U.S. debt.
Pomp pointed out that the 10-year U.S. Treasury yield has fallen from 4.8% in January to the current 4.21%, indicating that the strategy "is moving in the right direction." Trump previously stated on Fox News: "No one can get rich with high interest rates because people can't borrow money."
The market expects the Federal Reserve to maintain the current interest rates at the March meeting, but the possibility of a rate cut in May is approaching 50%. In the game between Trump and Powell, the market continues to be under pressure, with Bitcoin having fallen 27.4% from its historical high, and the global crypto market cap evaporating by over $1.2 trillion.