Trump's recent statements seem to be calling for rate cuts, but where is the real impact? It's not the old cliché of "another rate cut," but rather him fixating on the goal of **"reducing to 1% or lower within a year"**—which amounts to directly forcing the entire market pricing system into a "super easing" script.

Let's clarify the numbers first. The Federal Reserve just cut the federal funds rate by 25 basis points on December 10, bringing it from a higher level to the current range of 3.50%-3.75%. The target of 1% that Trump desires still needs a reduction of 2.50-2.75 percentage points, or 250-275 basis points from here.

This isn't something that can be achieved with just "a couple more rate cuts." It implies that the entire 2026 must operate under a "continuous rate-cutting mode."

**Why is it necessary to cut to 1%?** Simply put, it's to open the floodgates for fiscal spending.

Don't be fooled by clichés like "rate cuts are good for risk assets." The real logic is this: the lower the interest rate, the bolder the government is to spend; the more the government spends, the more market confidence there is to bet. Statements like Trump's are never just about cheering on the Federal Reserve chair—they point to debt costs, corporate financing, the real estate market, employment data, and the entire cycle of the upcoming presidential election.

There's also a detail worth noting: discussions about the next Federal Reserve chair have already come to the table. Whether the market can deliver the rate cut magnitude he wants remains uncertain, but the clear signal is that he wants "more and faster rate cuts."