Is Trump Tanking the Market on Purpose? A Theory Worth Considering

Could Market Volatility Be Part of Trump’s Plan for Lower Rates?

I don’t usually dig into this stuff, but there’s a theory going around…

Is Trump deliberately crashing the market to force Powell to cut rates?

Sounds wild at first. But think about it…

FORCE HIS HAND

Trump wants lower rates. He’s asked for them. He’s complained about them.

He knows the Fed won’t just hand him a cut on a silver platter, oh no, so… what’s the next best move?

Create enough uncertainty to push Powell’s hand.

And let’s be honest, Trump’s no fool.

Whatever you think of him politically, he understands markets. He knows that:

👉🏻 Tariffs create uncertainty.
👉🏻 Flip-flopping on policy rattles businesses.
👉🏻 Uncertainty isn’t good for market confidence.

If businesses can’t plan cash flow or supply chains, they tighten up. The market wobbles.

Growth slows.

And if things start really cracking? Well, JP has to step in.

The Fed always says they don’t react to the stock market… but they do react to the economy.

That’s their job! (Apart from screwing over scalpers every Fed day)

If uncertainty drives a slowdown or recession fears ramp up, rate cuts become a real possibility.

And if Powell does cut?

Trump suddenly has what he wants, cheap money, confidence restored, and maybe even the mother of all bull runs. (And we’ve not even talked about US debt financing…)

At that point, he could change the game.

Dial back the tariff talk. Reassure businesses. Boom, markets rip.

Who knows…maybe it’s just a conspiracy theory.

But as traders, thinking about these angles matters.

Food for thought.