icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

Trump's Policies Spark Market Sell-Off, Recession Odds Rise 40%

Coin WorldFriday, Mar 14, 2025 4:17 pm ET
1min read

President Donald Trump's economic policies have sparked speculation that he is intentionally crashing the market to influence the Federal Reserve's interest rate decisions. This strategy, reminiscent of his first term, involves stoking growth fears to pressure the Fed into lowering interest rates, which could benefit the US economy in the long run.

Trump has publicly advocated for lower interest rates, and when the Fed did not comply, the administration allegedly took measures to crash asset prices. This move is seen as an attempt to force Jerome Powell, the Fed chair, to cut interest rates before the US government needs to refinance $7 trillion in debt over the next six months. The plan appears to be effective, with the 10-year yield plunging and the odds of a May interest rate cut now above 50%.

The crypto and stock market sell-off on March 10 was driven by fears of an impending recession, with analysts upping their odds of a recession this year to 40%. This economic uncertainty has also impacted the crypto market, with the 10-year yield plunging to its lowest level since Trump's election.

Goldman Sachs economists also expressed concern that Trump's trade war could lead to a sharp economic downturn, raising their 12-month recession odds to 20%. They warned that the outlook could worsen if the administration persists with its policies despite deteriorating data.

In other news, Securitize has partnered with RedStone to provide data feeds for its tokenized products, including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This partnership allows Securitize’s funds to be used across various DeFi products, expanding BUIDL’s use cases into money market exchanges and collateralized DeFi platforms.

Cboe bzx, a leading securities exchange, is seeking approval from US regulators to add staking into Fidelity’s Ether (ETH) exchange-traded fund. This move could potentially boost the appeal of Ether ETFs by giving investors access to yields. The Securities and Exchange Commission (SEC) has acknowledged more than a dozen crypto-related ETF filings, indicating a regulatory pivot since President Trump’s inauguration.

Comments

Post
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App
Sign in with GoogleSign in with Google