Remember when the Federal Reserve hit the brakes during Trump's first term? Back then, as soon as interest rate hikes paused, the market was like it had been injected with adrenaline. The current question is—if a hefty rate cut really happens in 2026, what will happen?

The US dollar will probably have to soften first, and US stocks might surge again. But don’t celebrate too early; this old friend of inflation could come knocking on the door again. The most paradoxical part is this: corporate financing costs have come down, money is easier to borrow, and expansion has become easier. But debt, this thing, accumulates faster than building blocks.

Is this really a miracle cure that prolongs the economy’s life, or is it a slow poison that quenches thirst with poison? Honestly, it all depends on how accurately this shot is administered and whether the timing is right. The market is now just waiting to see how this show unfolds.