Is Trump Playing Crypto Market Chess? Here’s What Pompliano Suggests

The financial markets have been on a rollercoaster ride lately, and crypto commentator Anthony Pompliano believes it’s not just bad luck. According to him, the Trump administration may be deliberately stirring volatility in an effort to pressure Federal Reserve Chairman Jerome Powell into cutting interest rates.

Pompliano, the founder of Professional Capital Management, laid out his theory in a March 10 X post, claiming that President Donald Trump and Treasury Secretary Scott Bessent are “taking matters into their own hands” by crashing asset prices to force Powell’s hand. Lower rates could make refinancing the U.S. government’s $7 trillion debt burden more manageable over the coming months, giving Trump’s economic policies a much-needed boost.

The Federal Reserve has so far resisted Trump’s calls for cuts, keeping interest rates at a 4.25%-4.5% target range. But Pompliano argues that recent economic turmoil—including stock market losses and increased uncertainty—is a calculated move to create a more favorable bond market, already reflected in the 10-year Treasury yield’s decline from 4.8% in January to 4.21% today.

Pompliano Notes Market Drop

Whether Pompliano’s theory holds water or not, the numbers don’t lie. On March 10 alone, the S&P 500 index fund (SPY) slid 2.66%, while the tech-heavy Nasdaq-100 plunged 3.8%, according to Google Finance data. Over the last month, the S&P 500 has lost 7.32%, and the Nasdaq-100 is down a staggering 10.7%.

The crypto market has suffered even worse losses. Bitcoin has dropped 27.4% from its record $108,786 high, and over $1.2 trillion has been wiped off the total cryptocurrency market cap since December. If the stock market continues its downward spiral, the standoff between Trump and Powell could escalate into a high-stakes contest of who blinks first.

The Fed’s Next Move: A Political Game?

Trump has not confirmed Pompliano’s theory, but his recent statements seem to align with the idea. In a Fox News interview on March 9, he remarked, “Nobody ever gets rich when the interest rates are high because people can’t borrow money.” Lower interest rates, he argued, would drive economic growth by making capital cheaper and more accessible.

According to CME FedWatch, the probability of the Fed holding rates steady at its March 19 meeting is a near-certainty at 96%. However, expectations for a rate cut in May are split 50-50.