Federal Reserve Chair Jerome Powell met with President Donald Trump on Thursday at the White House amid the president's ongoing pressure on the central bank to lower interest rates. The Federal Reserve issued a statement confirming the meeting, emphasizing that monetary policy decisions will continue to be grounded in unbiased economic analysis rather than political considerations.
The Fed's statement detailed that the discussion focused on economic developments such as growth, employment, and inflation but did not include any expectations or plans related to monetary policy. "Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook," the release said.
Powell reiterated the Federal Reserve's commitment to making decisions based on "careful, objective, and non-political analysis," assuring that the central bank’s independence remains intact despite the political environment. The White House did not provide an immediate comment on the meeting.
This interaction marks the first between Trump and Powell since the president began his second term. Prior to this, Powell had stated that he had not sought a meeting and would not do so, noting that it had always been the president who extended invitations.
President Trump has been vocal on his Truth Social platform urging the Federal Open Market Committee (FOMC) to implement rate cuts sooner than expected. However, the Fed has maintained steady rates since December 2024. Market analysts anticipate that, given ongoing uncertainties such as tariffs, the Fed will likely hold rates steady through the summer and potentially reduce rates later in the year, with futures indicating possible rate cuts by September.
Powell's meeting with Trump underscores delicate balancing act the Fed faces: managing inflationary pressures while maintaining employment levels, all within the context of political scrutiny. As of now, no shift in monetary policy has been announced following their discussion.
