The Trump administration may be intentionally creating uncertainty in the stock markets to corner Federal Reserve chair Jerome Powell into lowering interest rates, according to market commentator Anthony Pompliano.
Pompliano believes that crashing asset prices will put pressure on Powell to cut interest rates, decreasing the likelihood of the U.S. needing to refinance its debt.
The recent market panic, driven by Trump's tariffs, has contributed to a more favorable bond market and a decline in the 10-year Treasury yield, supporting Trump's purported strategy.
As the stock market continues to decline, it becomes a contest between Trump and Powell to see who will make the first move.