Fed Chair and Ex-President Trump Clash—Or Collaborate?—Behind White House Doors

Economic growth takes center stage as two of America’s most polarizing financial figures huddle in DC. No cameras, no transcripts—just the delicate dance of monetary policy meets political legacy-building.

Who blinked first? The Fed’s independence faces its ultimate stress test while a man who treats GDP like a personal credit score waits in the wings. Either way, Wall Street’s algo-traders will spin this meeting into 10,000 micro-narratives by lunchtime.

Fun fact: ’Productive discussions’ is DC code for ’we agreed to pretend this never happened.’

Insights from the Fed

Earlier today, the Federal Reserve announced insights into the meeting between President TRUMP and Chairman Powell. Despite Trump’s insistence on rate cuts, Powell and Fed officials have consistently highlighted the potential inflationary effects of tariffs. Expectations are set around the upcoming release of the Personal Consumption Expenditures (PCE) metric on Friday, projected at 2.2%, closely aligning with the Fed’s 2% inflation target. Nevertheless, the Fed remains poised to wield interest rate control in anticipation of dire economic scenarios.

According to Fed statements, the meeting did not touch upon monetary policy projections. Instead, the discussions seemed to focus on economic growth, employment, and inflation. Powell refrained from discussing his monetary policy outlook, implying that interest rates were likely not addressed during the meeting. He emphasized that policy directions will remain contingent upon incoming economic data and its implications.

Powell’s Assurances

In detailing the meeting, Powell reiterated the Federal Reserve’s commitment to set monetary policy that supports maximum employment and stable prices, as mandated. He assured that decisions WOULD be based solely on careful, objective, and non-political analysis. With this message, Powell underscored the Fed’s independence and adherence to its statutory goals.

While Bitcoin$106,798 markets remained indifferent to the meeting, speculation mounts as President Trump, who was reportedly having lunch with Vance, may soon release statements. Additional details from the WHITE House Press Secretary Leavitt’s upcoming briefing may offer further insights, which will be shared if they reveal significant points.