WASHINGTON (AP) 鈥� President Donald Trump met with Federal Reserve Chair Jerome Powell on Thursday and the two discussed the economy but not Powell's outlook for interest rates, the Fed said.
Powell told Trump that the central bank would make decisions about the short-term interest rate it controls 鈥渂ased solely on careful, objective, and non-political analysis.鈥� The Fed's rate typically influences borrowing costs across the economy, including for mortgages, car loans, and business borrowing.
The meeting comes as Trump has for not reducing the Fed鈥檚 key interest rate, calling him 鈥淭oo Late Powell.鈥� The president initiated the meeting, the Fed said.
Trump argues that there is 鈥渘o inflation鈥� and so Powell should cut rates, though such a move the borrowing costs consumers face. Inflation is down substantially from a year ago, yet it remains above the Fed鈥檚 2% target. Trump has also called Powell a 鈥渇ool鈥� and earlier this year suggested he would fire the Fed chair.
After financial markets reacted negatively, Trump 鈥渘o intention鈥� of removing Powell, whose term as chair ends in May 2026.
The meeting is the first during Trump鈥檚 second term, though the two met and had lunch together in his first term. Fed chairs regularly meet with Treasury secretaries but less often with presidents, given that the Fed鈥檚 interest rate decisions are intended to be separate from political concerns.
Earlier this month, Powell he had never requested a meeting with a president and added, 鈥淚 never will,鈥� suggesting it was inappropriate given the Fed's political independence.
鈥淚 can鈥檛 imagine myself doing that," Powell said at a press conference May 7. 鈥淚t鈥檚 always鈥攃omes the other way: A President wants to meet with you.鈥�
Christopher Rugaber, The Associated Press
