Trump and Powell: A Clash Over Interest Rates

President Trump met with Federal Reserve Chair Jerome Powell to discuss the economy. Though interest rates were not specifically discussed, Trump pressured Powell to lower rates, citing low inflation. Powell emphasized the Fed's independent decision-making process, rooted in objective economic analysis, amid Trump's criticism of his policies.

President Donald Trump met with Federal Reserve Chair Jerome Powell on Thursday, engaging in a significant discussion about the state of the economy. Although interest rates were not directly addressed, Trump maintained pressure on Powell to lower rates, claiming 'no inflation' as justification.

Powell, in response, reiterated the Federal Reserve's commitment to making decisions that are 'based solely on careful, objective, and non-political analysis.' This statement highlights the importance of the Fed's independence in controlling short-term interest rates, which impact borrowing costs across various economic sectors, including mortgages, car loans, and businesses.

The meeting, initiated by Trump, marks the first of its kind during his second term. While Fed chairs regularly meet with Treasury secretaries, meetings with presidents are less common due to the intended separation of the Fed's interest rate decisions from political influences.

(With inputs from agencies.)