Federal Reserve Chair Jerome Powell told President Donald Trump that monetary policy decisions would be “based solely on careful, objective, and non-political analysis,” according to a brief statement by the central bank Thursday.
Powell’s comments came in a meeting he attended at the White House on Thursday “at the President’s invitation,” the Fed said in its statement, which underscored that central bank chief sought to defend the institution’s independence.
“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 said.
The Fed reiterated what Powell has long emphasized in the face of Trump’s long-running, unprecedented pressure campaign urging the central bank to slash interest rates — “that he and his colleagues on the FOMC will set monetary policy, as required by law, to support maximum employment and stable prices,” the central bank said, referring to Federal Open Market Committee that sets rates.
Central bank leaders are set to meet June 17-18 to determine their next interest rate decision.
A White House spokesperson didn’t immediately respond to a request for comment.
Trump, who nominated Powell to his role atop the Fed in 2017, has repeatedly attacked the central bank chief, recently criticizing him on social media as “a FOOL, who doesn’t have a clue.”
Trump’s Fed comments have often moved markets. His April 17 Truth Social post saying that “Powell’s termination cannot come fast enough” led to days of market turmoil. The president eventually backed off, saying five days later that he had “no intention” of firing Powell and “never did,” a possibility that the Supreme Court recently noted would likely exceed presidential powers.
While meetings between the president and the Fed chair are rare, Powell did meet face-to-face twice with Trump in 2019, during his first term: once on February 4 (Powell’s birthday), and again on November 18 of that year. Powell also met with President Biden in May 2022, after the Fed chair was reappointed to another term.
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