Trump's deliberate market manipulation aims to lower interest rates by pressuring the Federal Reserve. Learn how this strategy could impact the US economy.
According to Anthony Pompliano, the founder of Professional Capital Management, Donald Trump and his team deliberately caused market fluctuations to influence Jerome Powell, the Federal Reserve Chair, to decrease interest rates. This strategy could help the US government finance around $7 trillion of debt in the coming months at a lower cost. Pompliano believes Trump’s tariff policies and market uncertainty have reduced the yield on 10-year Treasury bonds from 4.8% in January to 4.21% in March. However, Powell has stated that the Federal Reserve does not see the need for rapid changes in monetary policies, despite ongoing political pressure to lower interest rates which could impact future central bank decisions.
