Sameer Shah

A lot of people are expecting the markets to pump big in 2026, but they will be wrong for some time.

Here's what Trump is planning in 2026:

PART 1: THE CRASH

Right now the U.S. economy is already looking weak:

Layoffs are rising.
Bankruptcies are increasing.
Credit defaults are building.
Housing demand is collapsing.
Home sellers are far outpacing buyers.

Because of this, there's a decent chance of a stock market correction in the next 2-3 months, similar to Q1 2025.

In this case:
• S&P 500 could fall 10%-15%
• Nasdaq could fall 15%-20%

And since crypto mostly moves alongside stocks, it will experience even bigger corrections and a possible capitulation.

PART 2: THE BLAME

During this market crash, Trump will put blame on Powell and the Supreme Court (if they rule against his tariffs).

Jerome Powell’s term ends in May 2026, which means Trump could easily put blame on him.

Powell didn’t cut rates.
Powell kept policy tight.
Powell didn’t inject liquidity when markets weakened.

This will be done so that Powell doesn't remain a member of the Board of Governors after his term as Chair ends.

Trump knows that if Powell is still there, he could influence the decisions and could make things harder for Kevin Warsh.

PART 3: THE EASING

The moment Powell leaves and Kevin Warsh becomes the Fed Chair, easing will start.

Warsh has already hinted at tools like yield curve control, which would cap long-term bond yields and make borrowing cheaper.

Cheaper borrowing = More liquidity.
More liquidity = higher asset prices.

At the same time, other liquidity drivers could align:
• A possible $2,000 tariff dividend
• Big tax cuts
• Approval on crypto laws like the CLARITY Act.

All time will be done to pump the stock market and the crypto market.

PART 4: THE ELECTION

U.S. midterm elections are in Q4 2026, and the betting markets are showing that Republicans are losing it.

If Trump is able to pump the markets before the election and also provide some free money to average Americans, Republican winning odds could go up.

The markets will forget everything the moment prices start to go up.

Also, dividend money and tax cuts will boost small business owners' earnings.

Not only that, the market will see Powell as a culprit and blame him for everything bad that has happened.

So the theory is:
Early 2026 → Correction + blame Powell.
Mid 2026 → New Fed + liquidity easing.
Late 2026 → Market recovery into elections.

This means the next few months could be bad.

After that, accumulation will start and then the markets could see a good recovering heading into Q3-Q4 2026.