Trump Urges Powell to Lower Rates, Fed Chief Stands Firm on Data-Driven Policy

Federal Reserve Chairman Jerome Powell met with U.S. President Donald Trump at the White House on May 29. The meeting, which was at Trump's invitation, focused on the state of the U.S. economy, including topics such as economic growth, employment, and inflation. Powell emphasized that the policy

Trump has been vocal about his dissatisfaction with interest rates and has expressed his desire for a rate cut. Earlier in the month, he hinted at attempting to remove Powell from his position. Powell, however, has maintained the Fed's independence, stating that he had never requested a meeting with any president and would not do so in the future. He also clarified that the Fed's decisions are based solely on the latest data and economic forecasts, not on political pressure.

The meeting marked the first face-to-face encounter between Trump and Powell since Trump took office. Powell was nominated by Trump during his first term and later renominated by Democratic President Joe Biden for a second term. The White House confirmed that Trump urged Powell to lower interest rates during their discussion. Despite the president's wishes, Powell remained steadfast in his commitment to the Fed's mandate of promoting maximum employment and stable prices, ensuring that monetary policy decisions are made independently and based on economic data.

Powell's stance underscores the Fed's commitment to maintaining its independence and focusing on economic data rather than political pressures. This meeting highlights the ongoing tension between the executive branch and the central bank, with Trump's public comments on interest rates and monetary policy contrasting sharply with Powell's emphasis on data-driven decision-making. The Fed's approach ensures that monetary policy remains a tool for economic stability, rather than a political bargaining chip.