Trump meets Powell for the first time since 2019, Trump requests interest rate cuts, Powell insists on policy independence

On Thursday, the Federal Reserve stated in a statement that Federal Reserve Chairman Jerome Powell met with U.S. President Donald Trump at the White House on Thursday, May 29, at the invitation of Trump. The two discussed the state of the U.S. economy, including topics such as economic growth, employment, and inflation.

This was the first meeting between the two since Trump began his second term as President of the United States. It was also their first meeting since November 2019.

Earlier this month, Powell stated that he would not seek a meeting with Trump unless the President requested it. "I have never asked to meet with any President, nor will I ever. I won't do that. I have never had a reason to request a meeting. It is always initiated by the other party."

The Federal Reserve indicated that Powell did not discuss expectations for monetary policy during the meeting, but emphasized that the policy path would depend entirely on future economic data and the impact of that data on the economic outlook. Powell stressed that he and his colleagues on the Federal Open Market Committee (FOMC) would formulate monetary policy aimed at supporting maximum employment and price stability in accordance with legal requirements, and that all decisions would be based on careful, objective, and non-political analysis.

The meeting between Trump and Powell came shortly after a series of tariffs on U.S. trading partners announced by Trump were mostly ruled invalid by the courts.

The Federal Reserve has maintained interest rates unchanged through 2025, believing that a patient policy stance is appropriate given the increased economic uncertainty caused by Trump's expanding and adjusting tariff policies. Federal Reserve policymakers have indicated that the announced tariffs are expected to put pressure on economic growth while raising inflation levels.

The Federal Reserve's "wait-and-see" stance has drawn Trump's dissatisfaction. Trump has repeatedly criticized the Federal Reserve under Powell's leadership, publicly calling for interest rate cuts. Trump previously stated that Powell often adjusts policies too slowly and has referred to Powell as a "big loser" multiple times.

In an April social media post this year, Trump reignited speculation about whether he would seek to remove Powell, a speculation that first arose during his first term as President. However, Trump later shelved that idea. Powell's term as Federal Reserve Chairman is set to expire in May 2026.

Additionally, a Supreme Court ruling this month protected the Federal Reserve from such removal. This ruling is part of a broader ruling that allows the U.S. President to remove senior officials of independent agencies.

Powell has repeatedly emphasized that Federal Reserve officials take a non-political stance when formulating policies and make decisions based on their judgment of the best interests of the economy. According to the Federal Reserve, Powell reiterated this position to Trump during the meeting.

Trump Pressures Powell Again for Rate Cuts

Shortly after the Federal Reserve's statement was released, White House Press Secretary Karoline Leavitt confirmed the accuracy of the Federal Reserve's statement during a briefing.

The White House stated that during his first face-to-face meeting with Powell since taking office, Trump urged Powell to lower interest rates. Leavitt stated during the briefing on Thursday that Trump told Powell that he believes the failure to cut rates is a wrong decision. Levitt stated that this decision puts us at an economic disadvantage compared to other countries, and the president has been very outspoken about this, both in public and—now I can reveal—in private as well. The two did not discuss whether Trump would seek to remove Powell.

Subsequently, White House National Economic Council Director Hassett stated that he participated in the meeting between President Trump and Federal Reserve Chairman Powell, confirming Powell's statement after the talks.

Due to ongoing uncertainty regarding tariffs, the market generally expects the Federal Reserve to keep interest rates unchanged until the situation becomes clearer. Futures market pricing indicates that the Federal Reserve may not resume rate cuts until September at the earliest, and there may be another rate cut before the end of the year