Powell to Trump My Rates Don't Play Politics!

Powell Assures Trump: Rate Decisions Based on 'Non-Political' Analysis

In a closely watched meeting at the White House on Thursday, Federal Reserve Chair Jerome Powell met with President Donald Trump amid ongoing pressure from the president for lower interest rates. The meeting, confirmed by the Federal Reserve, aimed to address economic developments but notably avoided any discussion of future monetary policy specifics.

According to the official Fed statement, the discussion centered on key economic indicators:

• Economic growth
• Employment
• Inflation

"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 statement clarified. "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."

Commitment to Objective Analysis

Crucially, the release emphasized Powell's unwavering commitment, along with his Fed colleagues, to basing monetary policy decisions on "careful, objective, and non-political analysis." This reassurance comes at a time when the central bank is navigating a complex economic landscape, balancing its mandate to promote full employment and stable prices amidst potential inflationary pressures from Trump's tariff policies.

The White House has yet to release an official comment regarding the meeting.

Trump's Persistent Calls for Rate Cuts

President Trump has been vocal in his calls for the Federal Open Market Committee (FOMC), led by Powell, to lower interest rates. He has frequently used his Truth Social platform to express his views. For example, on May 17, Trump posted:

"'THE CONSENSUS OF ALMOST EVERYBODY IS THAT, "THE FED SHOULD CUT RATES SOONER, RATHER THAN LATER." Too Late Powell, a man legendary for being Too Late, will probably blow it again - But who knows???'"

A Meeting of Importance

This meeting marks the first between Trump and Powell since the beginning of Trump's second term. Previously, Powell had stated that he would not initiate a meeting with the president, emphasizing the Fed's independence.

"I've never asked for a meeting with any president, and I never will," Powell stated earlier this month. "I wouldn't do that. There's never a reason for me to ask for a meeting. It's always been the other way."

Market Expectations and Future Rate Decisions

With ongoing tariff uncertainty, financial markets largely anticipate the Fed to maintain its current stance on interest rates until greater clarity emerges. Current futures market pricing suggests that the central bank is unlikely to resume cutting rates until at least September, skipping the June and July meetings. However, the likelihood of another rate reduction before the end of the year remains. In the latter part of 2024, the FOMC lowered rates by a full percentage point.

Looking Ahead

Powell's reaffirmation of the Fed's commitment to data-driven, non-political analysis is a crucial signal to the markets and the public. Navigating the complexities of the current economic climate requires a steady hand and a clear focus on the dual mandate of full employment and stable prices. The coming months will be critical in determining the Fed's next moves and their impact on the broader economy.

Tags: Donald Trump, Jerome Powell, Federal Reserve, Interest rates, US economy, Monetary policy, Economic growth, Employment, Inflation, White House

Source: https://www.cnbc.com/2025/05/29/fed-chair-powell-told-trump-in-thursday-meeting-that-rate-decisions-would-be-based-on-non-political-analysis.html