On the surface, a 25 basis point rate cut appears to be a routine response to economic slowdown. From the perspective of economics textbooks, rate cuts are typically seen as standard tools to stimulate the economy, reduce corporate financing costs, and boost market confidence.

However, the timing is too 'coincidental'.

Before the decision was announced, Trump's economic advisor and a leading candidate for Federal Reserve chairman, Kevin Hassett, publicly 'predicted' that there would be a 25 basis point cut. This kind of 'precise prediction' from the core circle of the White House has led the market to question: is this truly an independent decision by the Federal Reserve based on economic data, or is it the result of a prior 'heads up'?

More critically, Trump has publicly attacked Powell multiple times over the past year, claiming he is 'playing politics' and even threatening to seek his removal. This unprecedented political pressure has crossed the line since the Federal Reserve's establishment. Historically, even during the most severe economic crises, it has been rare for a president to intervene so blatantly in central bank decisions.

The market no longer sees rate cuts as purely professional decisions, but rather as the product of compromises between policy and political pressure.

This collapse of trust is more frightening than the rate cut itself.