The Fed: Trump meets with Fed boss Powell to talk economy after months of tension
Federal Reserve Chairman Jerome Powell met with President Donald Trump at his request to discuss the economy, but the Fed said Powell gave no hints or promises about what the central bank will do next.
Trump has repeatedly and harshly criticized the Fed and Powell for not cutting interest rates fast enough when the economy weakened earlier this year, but he called the face-to-face meeting “good & cordial,” in a tweet.
Just finished a very good & cordial meeting at the White House with Jay Powell of the Federal Reserve. Everything was discussed including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.
Hours after the meeting and his original tweet, Trump criticized the Fed again but in more milder terms.
At my meeting with Jay Powell this morning, I protested fact that our Fed Rate is set too high relative to the interest rates of other competitor countries. In fact, our rates should be lower than all others (we are the U.S.). Too strong a Dollar hurting manufacturers & growth!
The face-to-face meeting on Monday was the first between the two men since Trump in July unleashed an unprecedented volley of criticism by a president toward a Fed chairman.
“At the President’s invitation, Chair Powell met with the President and the Treasury Secretary Monday morning at the White House to discuss the economy, growth, employment and inflation,” the Fed said in a statement.
“Chair Powell’s comments were consistent with his remarks at his congressional hearings last week,’ The Fed went on. “He did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy.”
Others view the meeting as a good thing — an effort to clear the air.
I don’t think it should be seen as a brush-back as much as just good precautionary effort to keep imaginations from running wild. No one should have a problem with a Fed Chair meeting with a POTUS & Treasury secretary.
In congressional testimony last week, Powell said interest rates are likely to remain steady unless the economy suffers further deterioration. The central bank has cut a key short-term interest rate three times this year, lowering borrowing costs for businesses and consumers.
The reduction in interest rates appears to have helped stabilize the economy and lifted the stock market
Trump has continued to bash the Fed despite the series of rate cuts, questioning why U.S. interest are higher than in other major economies such as Germany. He’s referred to the Fed chairman as “clueless Jay Powell” and said he’s like “a golfer who can’t put.”
Powell has refused to be drawn into a war of words with the president, saying he’ll do what he thinks is right and that he won’t step down.