HOT DEVELOPMENT: A very harsh statement came from US President Donald Trump about the FED and Jerome Powell! Here are the details.

The President of the United States, Donald Trump, reiterated his call for a rate cut to the FED in a statement made through the Truth Social platform.

President Trump stated, "There is no inflation, the prices of gasoline, energy, grocery products, and almost everything have dropped! The Fed should lower rates like Europe and China. What is happening to 'Mr. Too Late Powell'? This injustice comes at a time when America is ready to bloom!"

The possibility of a long-desired interest rate rebate by Trump has come back to the agenda with the 90-day tariff rebate agreement reached between America and China. According to the agreement, the 145% tariff imposed on China has been reduced to 115%. This development has strengthened expectations that both inflation pressures may ease and trade relations may soften.

Since taking office, Trump has been pressuring the FED to lower its policy interest rate, and in the face of resistance from Fed Chair Jerome Powell, he had previously hinted at dismissal. Currently, the interest rates are hovering between 4.25 and 4.5 percent. However, despite the pressures from the White House, Powell has not made any policy changes so far.

The FED's hesitation regarding interest rate cuts is largely due to uncertainties in the economic outlook. One of the main reasons for this uncertainty was the Trump administration's tariffs policy, particularly towards China. The high tariffs posed a risk of increasing consumer prices by raising costs for importers and exporters.

However, the recent agreement indicates that a more moderate dialogue process can be initiated not only with China but also with other trading partners. According to experts, the temporary tax rebate may add a new dimension not only to the markets but also to the pressure on the FED's interest rate policy.