Trump meets Powell for the first time since 2019, again pressuring Fed to cut rates
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Trump meets Powell for the first time since 2019, again pressuring Fed to cut rates
Trump said the Federal Reserve's failure to cut interest rates was a mistake.
Navigating Web3 tides with focused insightsBy Hao He, Wall Street Journal
On Thursday, the Federal Reserve said in a statement that Fed Chair Powell met with U.S. President Trump at the White House on Thursday, May 29, at the president's invitation. They discussed the state of the U.S. economy, including topics such as economic growth, employment, and inflation.
This marks the first meeting between the two since Trump began his second term as U.S. president, and their first meeting since November 2019.
Earlier this month, Powell stated that he would not seek a meeting with Trump unless the president initiated it. "I've never asked to meet with any president, and I never will. I won't do it. I have no reason to ask. These meetings are always initiated by the other side."
The Fed said Powell did not discuss expectations for monetary policy during the meeting, emphasizing instead that the policy path would depend entirely on incoming economic data and its implications for the economic outlook. Powell reiterated that he and his colleagues on the Federal Open Market Committee (FOMC) would make policy decisions based on careful, objective, and non-political analysis, aiming to support maximum employment and price stability as required by law.
The meeting between Trump and Powell comes shortly after a series of tariffs announced by Trump on U.S. trade partners were largely ruled invalid by courts.
The Fed has kept interest rates unchanged throughout 2025, viewing a patient policy stance as appropriate amid heightened economic uncertainty caused by Trump's expanding and shifting tariff policies. Fed policymakers have indicated that the announced tariffs are expected to weigh on economic growth while pushing inflation higher.
The Fed's "wait-and-see" approach has drawn criticism from Trump. He has repeatedly criticized the Fed under Powell, publicly calling for rate cuts. Trump previously said Powell often adjusts policy too slowly and has referred to him multiple times as a "big loser."
In a social media post in April, Trump revived speculation about whether he might try to remove Powell, a notion that first emerged during his first presidential term. However, Trump later put that idea on hold. Powell's term as Fed chair runs until May 2026.
Additionally, a recent Supreme Court ruling this month protects the Fed from such removal. The decision is part of a broader ruling that allows the U.S. president to remove senior officials from independent agencies.
Powell has repeatedly emphasized that Fed officials take a non-political approach when making policy decisions, acting based on their best judgment of the economy's interests. According to the Fed, Powell reaffirmed this position to Trump during the meeting.
Trump Again Pressures Powell to Cut Rates
Shortly after the Fed's statement was released, White House press secretary Karoline Leavitt confirmed the accuracy of the Fed's statement during a briefing.
The White House said that during his first face-to-face meeting with Powell since taking office, Trump urged Powell to lower interest rates. Leavitt said Thursday that Trump told Powell he believed the Fed chair's failure to cut rates was a mistaken decision.
Leavitt said this decision puts the U.S. at an economic disadvantage compared to other countries, and the president has been very outspoken about it—both publicly and, now she can reveal, privately. The two did not discuss whether Trump might seek to remove Powell.
Later, U.S. National Economic Council Director Hassett said he participated in the meeting between President Trump and Fed Chair Powell and confirmed the accuracy of Powell's account of the discussion.
With tariff-related uncertainty still lingering, markets widely expect the Fed to keep rates unchanged until the situation becomes clearer. Futures pricing suggests the Fed may not resume rate cuts until as early as September, and possibly only one more cut by year-end.
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