Trump and Powell’s Closed-Door Meeting: Rate Cuts, Inflation, and the Unspoken Tension

Fed Chair Jerome Powell sat down with former President Donald Trump in a high-stakes meeting that markets wish they could eavesdrop on. No transcripts, no leaks—just speculation about what really went down.

Rate cuts on the menu? Trump’s been vocal about wanting cheaper money, while Powell’s Fed has clung to ’data dependence’ like a life raft. Meanwhile, inflation won’t quit, and the 2024 election looms over every policy whisper.

Bonus jab: If Powell folds on rates now, it’ll be the fastest pivot since a hedge fund dumping crypto at the first sign of a dip.

TLDR

• Jerome Powell met with Donald Trump at the White House during a period of economic uncertainty.
• Donald Trump has repeatedly urged the Federal Reserve to cut interest rates to boost economic growth.
• The meeting focused on economic topics including inflation, employment levels, and the impact of tariffs.
• Powell did not share future policy plans and emphasized that decisions will depend on economic data.
• The Federal Reserve restated its commitment to making non-political and legally mandated policy decisions.

Federal Reserve Chair Jerome Powell met with Donald TRUMP at the White House amid tensions over interest rate policy. This marked their first meeting in Trump’s second term and came during ongoing tariff disputes. Trump has pressured Powell to cut rates, citing low inflation and concerns about economic growth.

Powell Meets Trump Amid Rate Criticism

Jerome Powell and Donald Trump discussed current economic conditions, including growth, employment, and inflation trends, during their WHITE House meeting. The Federal Reserve confirmed the meeting occurred at Donald Trump’s invitation. The meeting followed weeks of public criticism from Donald Trump regarding the Fed’s rate stance.

Powell reiterated that monetary policy decisions depend on incoming data and future economic conditions, not political pressure. He stated the Fed aims to maintain maximum employment and stable prices as legally mandated. The Federal Reserve emphasized that all policy decisions WOULD rely on objective analysis.

This meeting came just one day after the Fed released its minutes outlining recent policy discussions and global trade uncertainties. The report noted concerns about the effects of Donald Trump’s tariffs on inflation and supply chains. The Fed maintained a steady position as it monitors long-term inflation risks and their effect on policy.

Donald Trump Presses for Immediate Rate Cuts

According to the White House, during the meeting, Donald Trump told Powell that not cutting interest rates is a policy mistake. Trump has urged for rate cuts for weeks, arguing that inflation has dropped and the economy needs support. The White House stated that Trump wants faster policy action from the Federal Reserve.

Press Secretary Karoline Leavitt confirmed the president’s message and described the meeting as focused but brief. She emphasized that Donald Trump remains dissatisfied with the current interest rate level. Trump believes lowering rates now would boost spending and economic activity.

Donald Trump continues to argue that Powell is too slow to act on rates while global uncertainties remain. He also blames the Fed for weakening potential recovery momentum. Despite this, Powell declined to comment on future rate directions during the meeting.

Fed Maintains Independence Despite Political Pressure

The Federal Reserve stated that Powell did not discuss specific policy forecasts or timing during the discussion with Donald Trump. Powell maintained that the Federal Open Market Committee will make decisions based only on data. The Fed restated its commitment to non-political, transparent decision-making in line with its dual mandate.

Powell noted that inflation trends remain tied to trade developments, especially Donald Trump’s tariff policies. He underlined that tariff-related inflation risks could influence upcoming decisions. The Fed continues monitoring employment and pricing indicators before making any changes.

Meanwhile, Chicago Fed President Austan Goolsbee stated that rate cuts may become likely if tariffs end under a trade resolution. He acknowledged that Donald Trump’s actions on tariffs could affect upcoming policy outcomes.