Trump Presses Fed Chair Powell On Interest Rates In Person

President Donald Trump is not pressurizing to cut interest rates.

The White House said that Trump met on Thursday with Federal Reserve President Jerome Powell during the President’s second term. During the meeting requested by the President, Trump allegedly criticized Powell for not reducing the Fede benchmark Federal Fund interest rate.

White House spokesman Karolin Lewitt said at a press conference on Thursday afternoon, “The President said that he believes that the fed chair is not reducing interest rates, which is making us a economic loss to China and other countries.”

Fed has placed its major interest rate at a high level this year to discourage it to borrow and spend and combat inflation.

Trump has often demanded that the central bank reduces low interest rates, which can at least temporarily promote the economy. Powell said for his share that Fed would take his decision on the basis of idea, not economic, political.

The Federal Reserve said in a statement about Thursday’s meeting, “Powell said that he and his colleagues on FOMC will determine monetary policy to support maximum employment and stable prices required by law, and would make those decisions completely careful, based on purpose and non-political analysis.”

Meetings between Fed Chair and President have been quite infinite in recent years. Powell met former President of Trump, former President Joe Biden in 2022 and then went for at least two years without seeing him face to face.

Trump has threatened freedom in second term

Powell and Trump often clashed at interest rates and freedom of Federal Reserve this year.

Trump threatened to set Powell on fire at one point, but has stepped back from him in recent weeks. Pavel has said that if Trump asked, he would not leave the post and defend the status of the fed as an independent organization with a reputation to stay above the political field.

The Supreme Court promoted Pavel’s argument last week when it mentioned in an uncontrolled court order that Trump may have the power to remove the heads of other independent agencies, but “Federal Reserve is a specific structured, semi-private unit that follows in the specific historical tradition of the first and second banks of the United States.”

The President has influenced the interest rate policy – not just what he wants

Fed’s policy bodies, Federal Open Market Committee include members appointed by the President and members appointed by the boards of some regional banks who form the Federal Reserve System. Trump appointed Powell as a fed chair in his first term, and Biden gave him a second term of four years in 2022.

The Fed has been reluctant to reduce the interest rates partially from the fear that Trump’s tariffs will rule over high inflation in view of epidemics, and who have explained the target of the Fed of 2% annual rate.

Credit cards, car loans and other loan rates in low interest rates will be pressurized downwards and can also indirectly affect mortgage rates.