Anthony Pompliano suggests that the Trump administration may be intentionally creating uncertainty in the stock markets to pressure Federal Reserve Chair Jerome Powell into lowering interest rates. This move aims to alleviate the refinancing burden on approximately $7 trillion in debt due soon. Pompliano, the founder of Professional Capital Management, claims that Trump's tariffs are contributing to this market behavior. The 10-year Treasury yield has dropped from nearly 4.8% in January to 4.21%, indicating a shift that aligns with Trump's potential strategy. The stock market has seen significant declines, with major indexes like the SPY and Nasdaq-100 falling by 7.32% and 10.7%, respectively, over the past month. Bitcoin has also suffered a 27.4% drop from its high. Pompliano highlights that lowering interest rates could boost economic activity by providing cheaper capital to consumers. Expectations for future rate decisions show a high probability that rates will remain unchanged in the near term, yet signs of economic downturn may prompt the Fed to reconsider.

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