Trump meets Powell for the first time in 2019. Trump demands interest rate cuts, Powell insists on policy independence

**Source**: Wall Street Insights  

On Thursday, the Federal Reserve said in a statement that Fed Chair Jerome Powell met with U.S. President Trump at the White House on Thursday, May 29, at the president’s invitation. The two discussed the development of the U.S. economy, including topics such as economic growth, employment, and inflation.  

This marks the first meeting between the two since Trump began his second term as U.S. president, and also their first meeting since November 2019.  

Earlier this month, Powell stated that he would not seek a meeting with Trump unless the president主动 (initially) requested it. “I have never asked to meet with any president, nor will I ever. I would not do that. I have never had reason to request a meeting. Such situations always originate from the other side.”  

The Fed said 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 its impact on the economic outlook. Powell stressed that he and his colleagues on the Federal Open Market Committee (FOMC) would formulate monetary policies in accordance with legal mandates to support maximum employment and price stability, with all decisions based on careful, objective, and non-political analysis.  

Trump and Powell’s meeting came shortly after most of Trump’s announced tariffs on U.S. trading partners were ruled invalid by courts.  

The Federal Reserve has kept interest rates unchanged throughout 2025, deeming it appropriate to adopt a patient policy stance amid heightened economic uncertainty caused by Trump’s expanding and adjusting tariff policies. Fed policymakers have said the announced tariffs are expected to pressure economic growth while driving up inflation.  

The Fed’s “wait-and-see” stance has drawn Trump’s ire. Trump has repeatedly criticized the Fed under Powell, publicly calling for interest rate cuts. Trump previously said Powell has often been too slow to adjust policies and has repeatedly called Powell a “big failure.”  

In a social media post in April, Trump reignited speculation about whether he would seek to remove Powell, a rumor that first emerged during his first term. However, Trump later set aside the idea. Powell’s term as Fed chair is set to expire in May 2026.  

Additionally, a Supreme Court ruling this month protected the Fed from such a potential removal. The ruling was part of a broader decision allowing U.S. presidents to remove senior officials of independent agencies.  

Powell has repeatedly emphasized that Fed officials adopt a non-political stance in policy-making and make decisions based on their judgment of the economy’s best interests. According to the Fed, Powell reiterated this position to Trump during the meeting.  

**Trump Pressures Powell Again to Cut Rates**  

Shortly after the Fed’s statement was released, White House Press Secretary Karoline Leavitt confirmed its accuracy during a briefing.  

The White House said Trump urged Powell to lower interest rates during their first in-person meeting since Trump took office. Leavitt said at Thursday’s briefing that Trump told Powell he believed the Fed chair’s failure to cut rates was a wrong decision.  

“This decision puts us at an economic disadvantage relative to other countries,” Leavitt said. “The president has been very vocal about this, both publicly and—now I can reveal—privately as well.” The two did not discuss whether Trump would seek to remove Powell.  

Subsequently, White House National Economic Council Director Hassett, who attended the meeting between Trump and Powell, confirmed the contents of Powell’s statement.  

With tariff uncertainties still lingering, markets widely expect the Fed to keep rates unchanged until the situation clarifies. Futures market pricing indicates the Fed is unlikely to resume rate cuts until September at the earliest, with possibly one more cut before the end of the year.  

**Disclaimer**: The views expressed in this article are solely those of the author and do not constitute investment advice from this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, or timeliness of the information and assumes no liability for any losses arising from the use of or reliance on this content.