Will the Federal Reserve suddenly cut interest rates by 100 basis points???

Recently, a “debate show” between Trump and Musk has sparked heated discussions, with some saying it’s just a performance aimed at shifting public opinion onto “financial capital” to find excuses for upcoming policy changes. The show hasn't ended, and California has erupted in turmoil—but strangely, this time the unrest isn't fierce, even revealing a certain degree of “restraint,” like a staged “crowd drama.”

There may be a larger scheme behind this. California is the stronghold of the Democratic Party and the center of financial capital. If chaos erupts here, the Democratic Party would be in danger. Trump seizes the opportunity to intervene, using a “victory amidst chaos” approach to once again gain presence. We have seen this operational method in his previous border wall, trade war, and racial issues.

From a financial perspective, Trump may have three main objectives:

1. Suppress the stock market, creating short-selling opportunities;

2. Promote market panic, increasing demand for U.S. Treasuries;

3. Consolidate votes for the election layout.

To achieve these goals, he might adopt two means:

• Use policy to suppress the market;

• Create geopolitical crises to guide capital back.

So, will the Federal Reserve cooperate with rate cuts? Don’t forget, Trump has previously directly called for a “200 basis point cut.” What he wants is rapid policy effects, not a gradual approach. If the market truly collapses, the Federal Reserve may be forced into a significant action—an aggressive rate cut, possibly starting at 100 basis points.

The larger script might be: After Trump controls the situation, the Federal Reserve will follow by loosening monetary policy, causing Bitcoin, gold, and other safe-haven assets to soar, while the dollar system begins to “restart.” Musk may retreat to the background, starting to promote a new financial and technological framework, supporting the new party that Trump may form.

In simple terms:

The chaos in California is the fuse, Trump is the operator, and rate cuts are already on the way.