Crypto investor and entrepreneur Anthony Pompliano has accused the Trump administration of manipulating the stock market to pressure the Federal Reserve into cutting interest rates. His comments come amid growing speculation that political influence is playing a role in U.S. monetary policy.
Market Volatility and Fed Pressure
Pompliano, a well-known Bitcoin advocate, suggested that the administration may be using strategic market interventions to create conditions that justify rate cuts. Lower interest rates typically boost economic activity and stock prices, a move that could benefit the administration politically ahead of elections.
Trump’s History of Criticizing the Fed
Throughout his presidency, Donald Trump repeatedly criticized the Federal Reserve for not cutting rates aggressively enough, often blaming it for economic slowdowns. He openly pressured Fed Chair Jerome Powell to take a more accommodative stance, arguing that lower rates would keep the U.S. economy competitive.
Are Markets Being Manipulated?
Pompliano’s claims echo concerns from analysts who believe the government may be influencing financial markets through policy announcements, trade war escalations, or direct interventions. While concrete evidence of manipulation is scarce, some traders point to unusual market movements that coincide with political statements or policy shifts.
What It Means for Investors
If true, such manipulation could create artificial market conditions, leading to unpredictable volatility. Investors may need to factor in political motives when making financial decisions, especially as the next election cycle approaches. Meanwhile, the Fed continues to assert its independence, but ongoing pressure from political leaders could shape its future policy moves.