On Thursday, May 29, Federal Reserve Chair Jerome Powell met with U.S. President Donald Trump at the White House upon the latter’s invitation. This marked their first meeting since November 2019. Powell emphasized that the Federal Reserve formulates monetary policies aimed at supporting maximum employment and price stability, with all decisions based on careful, objective, and non-political analysis. Trump, however, stated that the Fed’s failure to cut interest rates was a mistake.
In a statement released on Thursday, the Federal Reserve noted that Chair Powell and President Trump discussed U.S. economic developments, including growth, employment, and inflation. This was their first meeting since Trump began his second term as President and the first since November 2019. Earlier this month, Powell indicated he would not seek a meeting with Trump unless the President initiated it, stating, “I have never asked for a meeting with any president, and I never will. I don’t do that. I’ve never had a reason to ask for a meeting. It always comes from the other side.” The Fed clarified that Powell did not discuss monetary policy expectations during the meeting but reiterated that the policy path would depend entirely on incoming economic data and its implications for the economic outlook. Powell stressed that he and his colleagues on the Federal Open Market Committee (FOMC) would, in accordance with legal mandates, develop policies to support maximum employment and price stability, with all decisions grounded in thorough, objective, and apolitical analysis. This meeting occurred shortly after many of Trump’s announced tariffs on U.S. trade partners were invalidated by courts. The Fed has maintained unchanged interest rates through 2025, deeming a patient policy stance appropriate amid heightened economic uncertainty due to Trump’s expanding and adjusting tariff policies. Fed policymakers have indicated that the announced tariffs are expected to weigh on economic growth while raising inflation levels. The Fed’s “wait-and-see” stance has drawn criticism from Trump, who has repeatedly faulted the Powell-led Fed and publicly called for rate cuts. Trump has previously asserted that Powell often adjusts policy too slowly and has referred to him as a “big loser” on multiple occasions. In an April social media post, Trump reignited speculation about whether he would seek to remove Powell, a notion that first emerged during his initial presidential term. However, Trump later set aside this idea.Jerome Powell’s term as Federal Reserve Chair is set to expire in May 2026. Additionally, a recent Supreme Court ruling has protected the Fed from potential removal. This decision is part of a broader ruling that allows the U.S. President to dismiss senior officials of independent agencies. Powell has repeatedly emphasized that Fed officials adopt a non-political stance in policymaking and make decisions based on their judgment of the economy’s best interests. According to the Fed, Powell reiterated this position during his meeting with Trump.
Shortly after the Fed’s statement, White House Press Secretary Karoline Leavitt confirmed the accuracy of the Fed’s announcement during a briefing. The White House stated that Trump urged Powell to lower interest rates during their first face-to-face meeting since Trump took office. Leavitt noted on Thursday that Trump told Powell he believed the Fed Chair’s failure to cut rates was a mistake. She added that this decision has put the U.S. at an economic disadvantage compared to other countries, and the President has been very vocal about it, both publicly and privately. The two did not discuss whether Trump would seek to remove Powell. Later, White House National Economic Council Director Hassett, who participated in the meeting, confirmed the Fed’s account of the discussion. Due to ongoing tariff uncertainties, markets widely expect the Fed to keep rates unchanged until the situation becomes clearer. Futures market pricing indicates that the Fed may not resume rate cuts until September at the earliest, with possibly one more cut by year-end. Risk Warning and Disclaimer: Markets involve risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment objectives, financial situations, or needs. Users should evaluate whether any opinions, views, or conclusions in this article suit their particular circumstances. Investments based on this content are made at one’s own risk.
