Powell Meets Trump Amid Tariff Strain, Rate Cut Demands
Donald Trump and Federal Reserve Chair Jerome Powell met face-to-face today for the first time since the president began his second term.
A meeting was held at the White House as the economy faces higher uncertainty brought about by additional tariffs and because of increased pressure from politicians for lowered interest rates.
According to the Fed, President Trump set up the meeting and talked about important economic facts such as GDP, workforce statistics and inflation. Still, the report showed that Powell did not provide particular forecasts on policy, saying any upcoming moves will be based entirely on new economic information.
Trump Urges Swift Rate Cuts Amid Crisis
Chair Powell pointed out that monetary policy will be determined by new information and how it impacts the economy’s prospects. He also made clear that FOMC decisions will be guided by careful, objective, and non-political thinking.
Still, President Trump did not hesitate to express his opinions about the crisis. At a briefing after the meeting, White House Press Secretary Karoline Leavitt said that Trump asked Giancarlo to lower interest rates and called it a major mistake for them to stay where they were.
Trump made a statement about how inflation is settling down, so Powell, whom he criticizes as ‘too late,’ has no justification for keeping rates high in his opinion.
After the Fed released its latest meeting minutes, showing Powell and the FOMC adopting a cautious attitude, a meeting took place. Central bank officials keep assessing the damage from Trump’s new round of taxes, as a few members of the group predict these measures could cause inflation to rise again.
Austan Goolsbee, the leader of the Chicago Fed, said this week that rate cuts are possible if trade disputes are resolved through either new agreements or other diplomatic achievements.
The Fed is under increasing pressure from Trump to cut rates and is trying to maintain its policy-making independence during today’s crucial meeting. Each leader explained their opinion but the clash between acting quickly and being independent is still present.
