Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House on Thursday, reaffirming the central bank’s independence as the president continues to push for lower interest rates.
According to a rare public statement issued by the Fed, Powell told Trump that interest rate decisions would remain strictly tied to economic data and not to political influence. “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 statement read.
The central bank added that Powell and his colleagues on the Federal Open Market Committee (FOMC) would continue setting policy “based solely on careful, objective, and non-political analysis,” as required by law.
It was the first meeting between the two since Trump’s return to the presidency and came amid heightened tension between the White House and the Fed. Trump has repeatedly criticised Powell, calling him “Too Late Powell” and accusing him of damaging the economy by keeping rates too high. On social media, Trump claimed that Powell’s refusal to cut rates put the US at a disadvantage compared to countries like China.
Speaking after the meeting, White House press secretary Karoline Leavitt confirmed the president had directly told Powell it was a “mistake” not to lower rates. “The president’s been very vocal about that, both publicly and now I can reveal privately as well,” she said.
Although the Fed cut rates by a full percentage point in late 2024, it has held steady since Trump’s inauguration in January. Futures markets currently anticipate the next cut may not occur until September, with the FOMC likely to skip its June and July meetings barring new economic shocks.
The meeting also comes at a delicate moment for the Fed. Trump’s recent imposition of global tariffs — some of which have since been blocked by courts — has fuelled inflation concerns and added uncertainty to the economic outlook. Jobless claims have started to rise, and revised GDP data on Thursday showed a slight contraction in Q1.
Despite public pressure, Powell has repeatedly stressed the importance of the Fed’s independence. Earlier this month, he said he had “never asked for a meeting with any president” and “never will,” clarifying that it is only appropriate if the president initiates contact.
While Trump has made past threats to remove Powell, legal scholars and a recent Supreme Court ruling suggest the Fed chair is shielded from political dismissal. Powell’s current term as chair expires in May 2026, and his overall term on the Fed Board runs through January 2028.
