Inflation Takes a Dive: Is Trump Playing 4D Chess with Interest Rates? 🤔

In a twist that could only be described as delightfully absurd, the latest US core Consumer Price Index (CPI) print has come in at a rather unexpected 3.1%. Yes, you heard that right! It beat the oh-so-optimistic expectations of 3.2% by a whole 0.1%. 🎉 Who knew inflation could be so generous?

According to the ever-astute Matt Mena, a crypto research strategist at 21Shares (because who wouldn’t want to be a strategist in a world of digital coins?), this cooling inflation data has added a sprinkle of hope that the Federal Reserve might just decide to cut interest rates this year. Imagine that! A little liquidity in the markets could send risk-on asset prices soaring like a particularly ambitious space rocket. Mena elaborated:

//s3.cointelegraph.com/uploads/2025-03/01958c02-460a-70d2-b9fc-2f2ae73657f0″/>

Is President Trump crashing markets to force rate cuts? 🤷‍♂️

Federal Reserve Chairman Jerome Powell has been quite vocal about not rushing to cut interest rates — a sentiment echoed by Federal Reserve Governor Christopher Waller, who seems to enjoy the sound of his own voice. During a speech on February 17 at the University of New South Wales in Sydney, Australia (because why not?), Waller suggested that the bank should pause interest rate cuts until inflation decides to behave itself.

These comments have sent market analysts into a tizzy, fearing that a lack of rate cuts might trigger a bear market, sending asset prices plummeting faster than a lead balloon. 🎈

On March 10, market analyst and investor Anthony Pompliano speculated that President Trump might be intentionally crashing financial markets to force the Federal Reserve to lower interest rates. Because, of course, that’s the logical thing to do in a world where logic often takes a backseat.

According to The Kobeissi Letter (which sounds like a fancy restaurant but is actually a financial newsletter), the US government needs to refinance roughly $9.2 trillion in debt before it reaches maturity in 2025. Yes, trillion with a ‘T’. If they fail to refinance this debt at lower interest rates, the national debt, currently over $36 trillion, will balloon like a pufferfish at a particularly awkward party.

Due to these delightful circumstances, President Trump has made interest rate cuts a top priority for his administration — even if it means sacrificing asset markets and businesses in the short term. Because who doesn’t love a good gamble?

Magazine Elon Musk’s plan to run government on blockchain faces uphill battle

Read More

2025-03-13 01:27