The Federal Reserve released a statement on the 29th indicating that, at the invitation of U.S. President Trump, Federal Reserve Chairman Powell went to the White House that day to discuss economic developments such as growth, employment, and inflation with Trump.
In the statement, which consists of only three paragraphs, the Federal Reserve first noted that “Powell did not express specific views on monetary policy prospects, only emphasizing that the Fed's policy path will depend entirely on upcoming economic data and its impact on the economic outlook.”
The statement said that Powell also told Trump that he and his colleagues at the Federal Open Market Committee (FOMC) will formulate monetary policy in accordance with the law to support maximum employment and price stability, and that policy decisions will be made entirely based on prudent, objective, and non-political analysis.
White House Press Secretary Levitt told the media after Trump and Powell’s meeting, “The President told Powell that the Fed’s failure to lower rates is a mistake, putting the U.S. at an economic disadvantage to China and other countries.”
Since the start of his second term, Trump has repeatedly publicly pressured Powell to demand rate cuts from the Fed, but the Fed decided to keep rates unchanged following its meetings in January, March, and May this year, signaling that stemming inflation remains a priority on its monetary policy agenda.
In April this year, Trump criticized Powell as “Mr. Too Late” and stated he had the power to “remove” Powell. However, after negative reactions from the financial markets, Trump then turned to say he had “no intention” to remove Powell.
This is the first meeting between Trump and Powell during Trump's second term; the two also met and had lunch during Trump's first term. Federal Reserve Chairs typically meet regularly with the Treasury Secretary, but meetings with the president are relatively rare, as the Fed’s monetary policy decisions are supposed to be independent of political considerations.
At the regular press conference held after the Fed's May monetary policy meeting, when Powell was asked whether he would proactively request a meeting with the president, he stated that he has never proactively requested such a meeting, “and I never will. I can't imagine doing so. The initiation of such meetings is always the other way around—it's the President who wishes to meet with you.”
72-year-old Powell was nominated by Trump during his first presidential term to serve as the Federal Reserve Chairman, taking over from Yellen in February 2018. In 2021, Powell was nominated by then-President Biden to continue his role as Federal Reserve Chairman. His term will end in May 2026.