Market Chaos: Trump’s Plan to Slash Interest Rates?

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Market Chaos: President Trump’s Plan to Slash Interest Rates?

Written by Aaron S.,

Editor-In-Chief

Last Updated: March 11, 2025

Key Takeaways

Pompliano claims President Trump’s team is crashing markets to push the Fed into cutting rates;
Stock indexes, Bitcoin, and Treasury yields have dropped as uncertainty grows;
Lower interest rates could ease US debt and boost consumer borrowing power.

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Market Chaos: President Trump’s Plan to Slash Interest Rates?

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Anthony Pompliano, CEO of Professional Capital Management, suggested that the Trump administration may be intentionally causing stock market drops to pressure Federal Reserve Chair Jerome Powell into cutting interest rates.

He pointed out that the US is facing around $7 trillion in debt repayments in the coming months. Lower interest rates would make refinancing this debt more manageable.

In a March 10 post on X, Pompliano claimed that President Donald Trump and Treasury Secretary Scott Bessent "are crashing asset prices" to push Powell into action.

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Additionally, he noted that President Trump’s tariffs have contributed to this decline, which helped push the 10-year Treasury yield from 4.8% in January down to 4.21%.

If the market keeps falling, Pompliano believes it will turn into a standoff between President Trump and Powell, with both waiting to see who gives in first.

Pompliano also pointed out that lower interest rates would not just help the government—they would also benefit everyday Americans. He argued that cheaper borrowing costs would encourage spending and investment, which could boost economic activity.

On March 10, the Nasdaq-100 fell 3.8%, while the S&P 500-based SPY fund dropped 2.66%. Bitcoin BTC $90,657.81 has taken an even bigger hit, falling 27.4% from its record high of $108,786. Since December 17, the total crypto market cap has declined by more than $1.2 trillion.

Meanwhile, Real Vision crypto analyst Jamie Coutts said that while Bitcoin gained momentum as the dollar declined, two financial indicators could pose risks. What are they? Read the full story.