'Antagonists' Trump and Powell Meet for the First Time…“Mistake to Hold Rates” vs “Based on Data”

First Meeting After the Start of 'Trump’s Second Term'

Donald Trump, the President of the United States, met with Jerome Powell, the Federal Reserve (Fed) Chair who has not complied with his requests to lower the federal funds rate, at The White House on the 29th (local time).

The Federal Reserve announced that President Trump and Chair Powell discussed economic development, including growth, employment, and inflation, on this day. According to the Fed, Chair Powell emphasized at the meeting that while he would not make any predictions about monetary policy, its direction would rely entirely on information and the implications it holds for future economic outlooks.

Chair Powell also stated that, in accordance with the law, monetary policy would be set to support maximum employment and stable prices. He would make decisions based solely on careful, objective, and nonpolitical analysis. This implies that, regardless of President Trump’s calls for a rate cut, the Fed will set the benchmark rate based on objective data and its own judgment.

In contrast, President Trump said Chair Powell was making a mistake by not lowering the benchmark rate, and that this was putting the United States at an economic disadvantage in its relationships with other countries, including China, according to White House spokeswoman Caroline Leavitt at the briefing.

Since taking office in January, President Trump has repeatedly pressured for a rate cut, even raising the possibility of removing Chair Powell. However, under Powell’s leadership, the Fed has held the benchmark rate steady for three consecutive times since the start of Trump’s second term.

Chair Powell also expressed concern that the Trump administration’s sweeping tariff increases could lead to higher inflation and slower growth.

Regarding this, President Trump has referred to Chair Powell as “Mr. Too Late” (meaning always late in making decisions), “major failure,” and “clueless fool,” criticizing him repeatedly.

Reporter Song Jong-hyun scream@hankyung.com