Powell defends Fed independence after Trump pressures him to cut interest rates
The Federal Reserve chair said the two discussed "economic developments" but not his expectations for monetary policy at a White House meeting called by the president.Get more newsLiveon
May 29, 2025, 1:13 PM EDT / Updated May 29, 2025, 2:27 PM EDTBy Steve Kopack and Brian Cheung
Federal Reserve Chair Jerome Powell told President Donald Trump on Thursday that monetary policy decisions would be "based solely on careful, objective, and non-political analysis," according to a brief statement by the central bank.
Powell's comments came in a meeting at the White House on Thursday "at the President's invitation," the Fed said in its statement, which underscored that the central bank chief sought to defend its independence.
"Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook," the statement said.
The Fed reiterated what Powell has long emphasized in the face of Trump's long-running, unprecedented pressure campaign on the central bank to slash interest rates — "that he and his colleagues on the FOMC will set monetary policy, as required by law, to support maximum employment and stable prices," the central bank said, referring to Federal Open Market Committee that sets rates.
Central bank leaders are set to meet June 17-18 to determine their next interest rate decision.
White House press secretary Karoline Leavitt told reporters later Thursday that Trump conveyed to Powell "that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries." She acknowledged that "the president's been very vocal about that, both publicly and now, I can reveal, privately, as well."
Trump, who nominated Powell in 2017, has repeatedly attacked him, recently calling him on social media "a FOOL, who doesn’t have a clue."
Trump's Fed comments have often moved markets. An April 17 Truth Social post saying that "Powell’s termination cannot come fast enough" led to days of market turmoil. The president eventually backed off, saying five days later that he had "no intention" of firing Powell and "never did," a possibility that the Supreme Court recently noted would likely exceed presidential powers.
While meetings between the president and the Fed chair are rare, Powell did meet face-to-face twice with Trump in 2019, during his first term: once on Feb. 4 (Powell's birthday), and again on Nov. 18 of that year. Powell also met with President Joe Biden in May 2022, after Powell was reappointed to another term.
