President Eden Reserve Jerome Powell assured US President Donald Trump at a meeting held in the White House on Thursday, May 29) that the Fed “sets currency policy, as required by law, to support maximum employment and stable prices and make these decisions only for careful, objective and non -political analysis”.
Trump presses to reduce rates
Certainly came during their first personal meeting since Powell joined office in January. The meeting confirmed by the White House and the Fed emphasized the ongoing tensions over the interest rate policy.
During the Trump meeting, he reportedly told Powell that, according to Reuters, it does not reduce interest rates by “error”. The White House spokesman Karoline Leavitt said, “The President said he believed that the Fed chairman makes a mistake by not reducing interest rates, which puts us at the economic disadvantage for China and other countries.”
Fed emphasizes data -based policies
In a Command after meetingThe federal reserve system repeated its independence. “President Powell did not discuss his expectations for monetary policy,” Fed said, “with the exception of emphasizing that the journey of politics will be entirely dependent on incoming economic information and what it means for the view.”
Interest rates are maintained stable – for now
At the beginning of this month, the Fed maintained its political rate in the range of 4.25% – 4.50%, where it remained since December. Politicians have signaled the possibility of maintaining the level of stable for the next few months and waiting for the clarity of economic data and tariff policies.
Enrollments from the Fed May Meeting reveal growing concerns that business tariffs and politics uncertainty could slow economic growth or fuel inflation.
Markets expect to reduce rates this autumn
Despite the cautious attitude of the Fed, global brokers are determined in a potential reduction in rates in July.
History of friction between Trump and Powell
Trump promoted Powell to the Fed chair during his first term, but quickly frustrated Powell’s decision to raise rates. Although Trump expressed the desire to see how Powell had removed, he also said he was not planning to fire him.
Powell’s return to the White House
This meeting was identified by Powell’s first visit to the White House since November 2019, when he met Trump and the then Minister of Stance Steven Mnuchín. His last meeting with the seated president was Joe Biden and Finance Minister Janet Yellen.
Powell explained that such meetings are always at the request of the President and never started the Fed.
(Tagstotranslate) Donald Trump (T) Jerome Powell (T) The US President advocates lower interest rates
