The Trump administration may be intentionally creating uncertainty in the stock markets to corner Federal Reserve chair Jerome Powell into lowering interest rates, according to a market commentator. Doing so increases the likelihood that the US won’t need to refinance around $7 trillion in debt it owes over the next few months, Bitcoin commentator Anthony Pompliano said in a March 10 X post.
While Trump hasn’t confirmed such a strategy, Pompliano pointed to a Fox News interview on March 9 where Trump said: “Nobody ever gets rich when the interest rates are high because people can’t borrow money.”Pompliano added that lowering interest rates would also benefit American consumers:“The big goal, get interest rates down, and that will lead to more economic activity, thanks to access to cheap capital.
Give the people cheap capital and they’ll go and do things with it.”Related: Bitcoin dips to $80K in ‘ugly start,’ could retest key resistance: HayesCME FedWatch, a tool used to measure expectations for a Federal Reserve interest rate change, has tipped a 96% probability that the target rate will remain between 4.25% and 4.50% following the Federal Reserve’s next meeting on March 19. However, it’s near 50-50 odds for the target rate to be lowered in the Federal Reserve’s following meeting on May 7.
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Author / Journalist: Cointelegraph by Brayden Lindrea
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