Financial markets vacillate, investors are worried, and cryptos are under an unstable new period. At the heart of this agitation, a name insistently comes up: Donald Trump. According to several analysts and market observers, the American president is carrying out a strategy which aims to deliberately weaken the financial markets in order to force the Federal Reserve (Fed) to reduce interest rates. A hypothesis which, although spectacular, is based on public statements and worrying economic signals.
Trump and the Fed: a battle of influence on rates
Last February, Donald Trump publicly declared that the federal reserve had to lower interest rates, a request that encountered the inflexibility of Jerome Powell, president of the American monetary institution.
Faced with this refusal, the Trump administration is said to have, according to analyst Anthony Pompliano, undertaken to cause a brutal fall in financial assets in order to force the hand to the Fed. “The government takes matters into their own hands by crashing asset prices to force Jerome Powell to reduce rates,” he said.
The reasons behind this maneuver would be multiple:
- Force a drop in interest rates to lighten pressure on American debt;
- Influence monetary policy by bypassing the independence of the Fed;
- Create an economic electroshock in order to position yourself as a Savior;
- Modify market anticipations by encouraging investors to anticipate more favorable policies under this second Trump mandate.
The markets were quick to react. A collapse of the stock market indexes followed, accompanied by a significant fall in bond yields, the rate of treasury bills at 10 years having lost almost 60 base points in a few weeks.
Alex Krüger, renowned analyst, corroborates this thesis in a message published on X (ex Twitter) on March 11, 2025.
Meanwhile, the Fed remains firm, as it does not provide any immediate drop in rate, although the markets anticipate a possible reduction in May.
Pressure cryptos and a risk of recession
If we observe a plunge of shares and obligations, cryptos are not spared by ambient volatility.
On March 10, a brutal fall in the Crypto markets accompanied the stock market panic, fueled by the rise of recession fears in the United States.
JPMorgan revised upwards the probability of a recession in 2025 to 40 %, against 30 % previously. For Goldman Sachs, this threat is amplified by the aggressive trade policy of Trump, which could worsen economic tensions.
Meanwhile, some institutional actors try to exploit this period of instability to strengthen their presence in the crypto ecosystem.
Blackrock, via its SECURITIZE subsidiary, extends its activities in decentralized finance by the integration of its tokenized funds into DEFI platforms like Morpho and Compound.
For its part, the CBOE BZX scholarship grows to introduce Stuking to the Ethereum of Fidelity, an attempt to take advantage of the more favorable regulatory climate under the Trump administration.
If Trump manages to impose a drop in rates, the effects could be double -edged. In the short term, investors could benefit from less expensive access to credit, but a premature monetary relaxation would risk reviving inflationary tensions.
In addition, by creating artificial volatility on the markets, the president plays a dangerous game that could further weaken the world economy.
In the immediate future, the Crypto market remains suspended from the decisions of the Fed and the political movements of Washington. One thing is certain: the period that opens could be decisive for the future of financial regulation and the evolution of cryptos in the global economic system.
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