Trump Hosts Fed Chair Powell Amid Rate-Cut Demands/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House on Thursday to discuss economic trends, marking their first face-to-face since Trump’s return to office. Trump has publicly pressured Powell to lower interest rates, though Powell reiterated the Fed’s independence. The meeting comes amid intensifying scrutiny of inflation, job growth, and Fed policy.
Powell-Trump Meeting: Quick Looks
- First meeting since January, when Trump began his second term.
- Trump has criticized Powell for not lowering interest rates fast enough.
- Powell emphasized Fed’s independence, stating decisions rely on data, not politics.
- White House invited Powell — the Fed chair says he never initiates presidential meetings.
- No policy commitments made during the meeting, per Federal Reserve statement.
- Trump has threatened to fire Powell in the past, but has recently backed off.
- Supreme Court ruling upholds the Fed’s constitutional independence.
- Powell reiterated commitment to objective analysis, stable prices, and full employment.
Deep Look: Powell Meets Trump as Fed Independence Stays in Spotlight
WASHINGTON, D.C. — In a long-anticipated and politically charged encounter, Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House on Thursday, according to an official statement from the Fed. The meeting came at a time when economic uncertainty is intensifying and public scrutiny of Fed policy is at a peak.
“At the President’s invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation,” the Fed said in a statement.
While the meeting reportedly touched on key economic indicators, Powell refrained from offering any forward-looking guidance on interest rates, stressing that the Federal Open Market Committee (FOMC) would make decisions based solely on economic data and the broader outlook.
“Policy decisions will be made with careful, objective, and non-political analysis,” Powell emphasized.
Trump Pressures the Fed, Again
President Trump has repeatedly criticized Powell for not acting swiftly enough to lower interest rates — a stance he believes would stimulate growth and further stabilize inflation.
Despite the public pressure, Powell has consistently defended the central bank’s independence and data-driven decision-making process.
The tension between the two dates back to Trump’s first term when he frequently lashed out at Powell on social media. At one point, he even floated the idea of firing Powell, though recent signals suggest that possibility is off the table — at least for now.
Legal Backing for Fed Autonomy
Just last week, the U.S. Supreme Court reinforced the Fed’s constitutional independence, suggesting that any attempt to remove Powell without cause would likely be blocked in court. That decision provided Powell a legal buffer at a time of mounting political interference in central bank affairs.
A Meeting Long in the Making
This is the first in-person meeting between the two men since Trump’s inauguration in January. Earlier this month, Powell had been explicit about his stance on presidential meetings:
“I’ve never asked for a meeting with any President, and I never will,” he told reporters. “There’s never a reason for me to ask for a meeting. It’s always been the other way.”
Trump extended the invitation amid rising pressure over inflation concerns and slowing job growth. While the president hoped to sway the Fed toward dovish policy, Powell reportedly stood firm, avoiding any suggestions of rate cuts or easing.
What’s at Stake?
- The Fed has kept its benchmark interest rate at 4.3%, holding steady amid mixed economic signals.
- Inflation remains slightly above target, while job numbers have cooled modestly.
- Trump wants faster rate cuts to spur consumer demand and potentially buoy markets ahead of the 2026 midterms.
- Powell, however, is walking a tightrope — balancing inflation containment with growth and employment support.
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