Quick overview

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Jerome Powell met with Donald Trump on Thursday “at the president’s invitation,” the White House reported. The president told Powell he was making a mistake by not lowering interest rates.

The in-person meeting comes after months of Trump criticizing Powell and pressuring the Fed to loosen monetary policy. Powell met with the president to discuss economic developments, including growth, employment, and inflation.

The Fed claims that Powell only emphasized that the course of policy will be determined by incoming economic data and what that means for the outlook, without going into detail about his expectations for monetary policy.

Additionally, the Fed said in its statement that the chair and his colleagues on the Fed’s rate-setting committee will “only rely on careful, objective, and non-political analysis” when making decisions about monetary policy. The White House verified Powell’s meeting with the press secretary.

She added that Trump has been outspoken about his opinions in public. “The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries,” she said.

“I’ve never asked for a meeting with any president, and I never will,” he stated, adding that the Fed chair has no obligation to approach the person holding the Oval Office for a meeting. “The opposite always occurs: ‘A president wants to meet with you. 

“Trump has been an outspoken opponent of Powell during his first term in office, urging the Fed chair to lower interest rates on numerous occasions.

Powell has called for patience and prudence on interest rates, stating that he believes Trump’s tariffs will increase inflation and slow growth, placing the Fed in a difficult position.