Key Points – US President Donald Trump and Federal Reserve Chairman Jerome Powell held a rare, unannounced meeting at the White House on Thursday, May 29th, at Trump’s urging.
-Following the meeting, the White House stated Trump continued to press Powell for interest rate cuts, arguing current rates disadvantage the US economically.
-The Federal Reserve confirmed the meeting, stating Powell discussed economic developments but stressed that future monetary policy will depend solely on incoming data and be determined by “careful, objective, and non-political analysis.”
-This interaction occurs amidst Trump’s ongoing public criticism of Powell and the Fed’s independence, and as Trump’s tariff policies add inflationary uncertainty.
High Noon at White House? Trump Presses Powell for Rate Cuts (Again)
Donald Trump has long made it clear that he’s not a fan of the Federal Reserve having independence, and has never been shy about criticizing current Fed Chairman Jerome Powell, even though he himself appointed Powell during his first term.
Trump once asked, in 2020, “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?” Powell was appointed to a second term by President Biden, and that term will last through 2026.
But since returning, Trump has gone back to regularly criticizing Powell, including ripping him for not cutting interest rates quickly enough, at least compared to other central banks.
“Too Late should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now,” Trump said in a Truth Social post. “Powell’s termination cannot come fast enough!”
It was not a direct threat to fire Powell, but it was something close to it. The White House told CNBC at the time that the post “should not be seen as a threat to fire Powell.”
In another post, Trump accused Powell of timing his rate cuts to help Democrats, although Powell is a Republican who served in the George H.W. Bush Administration.
Powell has been clear in the past that he believes he cannot be fired, nor would he agree to resign if Trump asked him to. Any attempt by the president to remove Powell would almost certainly lead to a court fight. However, Trump would be free to decline to re-appoint Powell when his term expires in 2026.
A Meeting at the White House
After a few weeks of not much talk about his feud with Powell, the President and the Fed Chairman held a rare meeting on Thursday at the White House. The meeting had not been announced in advance. Per the New York Times, the meeting took place at Trump’s urging.
Per CNBC, the Fed has confirmed in a statement that the meeting took place, and that Powell reiterated that the Fed’s work cannot be political.
“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 said, per CNBC. “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.”
The Fed also promised that decisions about rates will continue to be made based on a “careful, objective, and non-political analysis.”
Trump’s View
The White House said after the meeting that Trump continued to push for rate cuts.
“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 in other countries and the president’s been very vocal about that, both publicly and now I can reveal privately as well,” White House Press Secretary Karoline Leavitt said in a briefing after the meeting.
That the president and Fed Chairman even met was a relatively rare occurrence. Powell said in a press conference earlier this spring that he had not met with Trump at that point.
“I’ve never asked for a meeting with any president, and I never will,” Powell said at the time. “I wouldn’t do that. There’s never a reason for me to ask for a meeting. It’s always been the other way.”
The Tariff Question
One thing thought to be holding back the Fed from cutting rates is Trump’s tariff regime, which has the potential to cause inflation to rise. A trade court this week ruled that most of Trump’s tariffs were unconstitutional, but an appeals court on Thursday ruled that the tariffs can immediately be reinstated.
The Trump Administration has already in court that plans to seek emergency relief in the Supreme Court.
About the Author
Stephen Silver is an award-winning journalist, essayist and film critic, and contributor to the Philadelphia Inquirer, the Jewish Telegraphic Agency, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. For over a decade, Stephen has authored thousands of articles that focus on politics, technology, and the economy. Follow him on X (formerly Twitter) at @StephenSilver, and subscribe to his Substack newsletter.
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