Federal Reserve Chair Jerome Powell met with President Trump at the White House on Thursday, their first in-person discussion since Trump returned to office.
The two discussed broader economic conditions, but Powell was careful to avoid commenting on future interest-rate decisions. He reiterated that the Fed’s policy choices are driven by data and economic indicators rather than political considerations. The meeting underscored ongoing tension between the White House and the central bank: Trump has publicly criticized Powell’s approach and has previously explored the possibility of replacing him.
White House Press Secretary Karoline Leavitt said the president told Powell privately that he believes lowering rates would be the correct course and that keeping rates higher risks weakening America’s competitive position with China. Powell, however, emphasized that the economy appears stable and that the Fed needs more clarity—particularly regarding the administration’s tariff plans—before making any rate changes at the upcoming June meeting.