
Recent discussions among analysts and market observers have centered on the possibility that former President Donald Trump may be intentionally trying to induce a downturn in the stock market. This speculation arises amid a 20% decline in the market since February 20, resulting in a loss of over $10 trillion in market value. Analysts suggest that Trump’s motive could be to prompt a flight into Treasury bonds, thereby providing the Federal Reserve with justification to reduce interest rates, a long-standing goal of his. However, the anticipated effect on interest rates appears to be limited; the yield on the 10-year Treasury has only decreased by 0.24% and remains above 4%, while the yield on the 30-year Treasury has risen to over 4.75%, its highest level since mid-February. Additionally, new markets have emerged on platforms like Polymarket, questioning whether Trump will claim responsibility for the market crash or pause reciprocal tariffs on the EU before they take effect on April 9.
If Trump's secret agenda is to crash the stock market to bring down long-term interest rates, the plan already failed. The yield on the 30-year Treasury is now above 4.75%, its highest since February 19th. So the plan to crash the stock market is now crashing the bond market too.
Many suggest that President Trump wanted to crash the market in order to bring rates down. If that was truly the goal, it didn't work very well. Since Feb. 20th, the market is down 20% erasing $10 trillion+, while the 10-year yield is down just 0.24% and still well above 4%
Some believe that Donald Trump is deliberately attempting to cause a sharp downturn in equities to force a flight into treasuries. If so, the Federal Reserve would have more of a reason to slash interest rates—Trump’s longstanding desire. https://t.co/hrRHcIdcWR