President Donald Trump met with Federal Reserve Chair Jerome Powell at the White House on Thursday, following ongoing criticism from the president over the Fed’s decision to keep interest rates unchanged.
Powell accepted Trump’s invitation to “discuss economic developments, including for growth, employment, and inflation,” but did not share his outlook on future interest rate decisions, according to a Federal Reserve statement.
Powell reiterated the Fed’s decisions on interest rates would be “based strictly on careful, objective, and non-political analysis.” The Fed’s benchmark rate influences borrowing costs across the economy, affecting mortgages, auto loans, and business financing.
The meeting is Powell’s first one-on-one of Trump’s second term. It comes amid ongoing economic uncertainty, with the Fed holding its benchmark interest rate steady between 4.25 percent and 4.5 percent since December.
White House Press Secretary Karoline Leavitt said Trump used the meeting to express his belief keeping interest rates high is a mistake, arguing it puts the U.S. at a competitive disadvantage compared to countries including China.
Since returning to office, Trump has frequently changed course on tariffs. A federal court ruling Wednesday which found the president “exceeded his authority” following levies last month, has since been temporarily halted on appeal.
The uncertain economic outlook is leaving businesses and consumers in limbo. Tariffs are generally expected to slow economic growth and increase inflation.
Trump argues there is “no inflation” and, therefore, Powell should cut rates, though such a move may not significantly lower borrowing costs for consumers.
Despite previously calling Powell a “fool” and suggesting the Fed Chair could be removed, Trump last month said he has “no intention of firing him.”
Legal protections and a recent Supreme Court ruling reinforced the Federal Reserve’s independence, making it clear that the president cannot remove the Fed chair solely over policy disagreements.
The White House said Thursday the president did not discuss his plans for nominating a new chair when Powell’s term is completed in May 2026.
Central bank leaders will meet on June 17 and 18 to decide its next interest rate policy.
