Financial markets are all over the place right now — stocks are swinging, investors are on edge, and crypto is riding another rollercoaster of instability. And guess whose name keeps popping up at the center of all this chaos? Yep, Donald Trump.
Some analysts think Trump is playing a strategic game, deliberately shaking up the markets to pressure the Federal Reserve (Fed) into lowering interest rates. Sounds wild, right? But this theory isn’t just a shot in the dark — it’s backed by Trump’s public statements and some pretty concerning economic signals.
Trump vs. the Fed: The Battle Over Interest Rates
Last February, Trump publicly called on the Fed to cut interest rates. But Jerome Powell, the Fed chair, wasn’t having it — he stood his ground and refused to budge.
That’s when things allegedly took a turn. According to analyst Anthony Pompliano, Trump’s administration may have intentionally triggered a market downturn to force Powell’s hand. “The government is crashing asset prices to make Powell lower rates,” Pompliano claimed.
So why would Trump pull a stunt like that? There are a few strategic reasons:
- Lower rates = cheaper debt – Cutting interest rates would ease the pressure on America’s massive national debt.
- Political leverage – If Trump can influence monetary policy, it gives him serious power over the economy.
- Hero complex – Trigger an economic crisis, then swoop in as the guy who saves the day. Classic move.
- Shifting market expectations – If rates drop, investors could start anticipating more Trump-friendly policies if he wins a second term.
And the markets definitely took notice. Stock indexes nosedived, and the yield on 10-year Treasury bonds fell nearly 60 basis points in just a few weeks.
Market analyst Alex Krüger even backed up this theory in a March 11, 2025 post on X (formerly Twitter), adding more fuel to the fire.
But here’s the kicker: despite the market turmoil, the Fed isn’t blinking. Powell and his team are standing firm, with no immediate plans to lower rates — even though the markets are betting on a cut by May.
Crypto Feels the Heat — Along with Recession Fears
It’s not just stocks and bonds feeling the squeeze — crypto is getting hammered too.
On March 10, the crypto market took a hard hit, fueled by growing fears of a U.S. recession. JPMorgan has raised the chances of a 2025 recession to 40% (up from 30%), and Goldman Sachs is warning that Trump’s aggressive trade policies could worsen economic tensions.
But while some investors are running for cover, others see opportunity. BlackRock, through its subsidiary Securitize, is expanding its presence in decentralized finance (DeFi). They’re integrating tokenized funds into platforms like Morpho and Compound — basically setting themselves up to profit from the chaos.
Meanwhile, Cboe BZX is pushing for staking approval on the Fidelity Ethereum ETF, hoping to capitalize on what could be a more relaxed regulatory environment under Trump’s administration.
So what happens if Trump actually gets his way and the Fed cuts rates? Short term, it could mean easier access to cheap credit — a win for investors. But long term? That’s where it gets dicey. An early rate cut could reignite inflation, creating even more market volatility.
Let’s face it — Trump is playing a high-stakes game. If it works, he could come out looking like a financial mastermind. But if it backfires, he might drag the global economy down with him.
One thing’s for sure: the next few months could be a defining moment for both financial markets and the future of crypto regulation. Stay tuned — this story is far from over.