Trump Meets With Powell, Fed Chair, at the White House…"Not Cutting Rates Is a Mistake"

According to Reuters on the 29th (local time), President Donald Trump of the United States invited Jerome Powell, Chair of the Fed, to the White House for their first face-to-face meeting.

On this day, President Trump reportedly conveyed to Chair Powell his position that "not lowering interest rates is a mistake, and this economically puts the United States at a disadvantage compared to competitors like the People's Republic of China."

Chair Powell did not mention any specific stance regarding future interest rate policies during the meeting but emphasized that the Fed's policy "will be determined entirely based on economic indicators and outlook."

In a statement, the Fed said, "Chair Powell stressed that, as mandated by law, policy decisions will be made carefully and objectively without political considerations, in pursuit of maximum employment and price stability."

Regarding this, White House spokesperson Caroline Leavitt said, "The statement by Chair Powell is factual, and the President is aware of it."

Earlier this month, the Fed maintained the benchmark interest rate within the 4.25~4.50% range and suggested a likelihood of rates being on hold for the time being. However, policy uncertainties over U.S.-People's Republic of China tariffs and resulting inflation concerns still remain key risks within the Fed.

In the past, Trump nominated Powell as Fed Chair during his first term, but later publicly voiced dissatisfaction over rate increases. At the time, Trump said he "wanted to dismiss Powell," but did not take actual action.

This meeting was the first time Chair Powell directly met the President since his November 2019 meeting with Trump.

This meeting once again underscored the delicate tension between United States economic policy and the independence of monetary policy.