Ryuu96 said:
He's an idiot. |
Signs are pointing towards market manipulation.
https://economictimes.indiatimes.com/markets/cryptocurrency/peter-schiff-calls-trumps-crypto-reserve-push-a-pump-and-dump-demands-congressional-probe/articleshow/118706125.cms?from=mdr
https://www.banking.senate.gov/newsroom/minority/ahead-of-white-house-crypto-summit-warren-questions-trump-crypto-czar-on-corrupt-plan-for-a-strategic-reserve-and-his-conflicts-of-interest
https://www.lemonde.fr/en/economy/article/2025/02/28/trump-and-the-temptation-of-manipulating-the-dollar_6738687_19.html
https://www.binance.com/en/square/post/21394292186169
According to crypto commentator Anthony Pompliano, the uncertainty in the U.S. stock markets could be a strategic move by Donald Trump's administration. The goal? To pressure Federal Reserve Chair Jerome Powell into cutting interest rates.
Pompliano suggests that if the Fed lowers rates, the U.S. could avoid refinancing its massive $7 trillion debt in the coming months.
President Donald Trump and Treasury Secretary Scott Bessent have reportedly decided to take matters into their own hands. “Asset prices are dropping to force Jerome Powell into lowering interest rates,” Pompliano claimed.
In January, Powell announced that the Fed would not cut interest rates from the current target range of 4.25% – 4.50%, despite Trump’s push for reductions.
Pompliano believes that Trump’s tariffs have played a role in recent market panic—a move that could be strategically aimed at influencing the bond market.
Falling Bond Yields – Is Trump’s Plan Working?
Pompliano pointed out that 10-year U.S. Treasury bond yields have already dropped from 4.8% in January to 4.21%, suggesting that Trump’s alleged strategy is heading in the right direction.
Whether this theory is accurate or not, stock markets are experiencing sharp declines, with cryptocurrencies hit even harder.
What’s Next? FedWatch Predicts the Likely Scenarios
🔹 96% probability that rates will remain at 4.25% – 4.50% after the March 19 Fed meeting
🔹 50% probability that rates will be cut at the following May 7 meeting
The Federal Reserve typically avoids cutting interest rates when inflation is high, as its main objective is maintaining price stability.
However, if the U.S. enters a recession, the Fed may have no choice but to adjust its policies. Some economists are already calling it the "Trump recession" or "Trumpcession", which could pressure the Fed into making cuts.
Trump's main goal is to make his billionaire friends more money. Fluctuating / volatile markets are lucrative markets. No good for regular people, yet those with access and the right tools can profit a lot from big market swings. Especially when you have a friend like Trump steering the markets for you.