A closed-door meeting took place on Thursday between US President Donald Trump and the head of the Federal Reserve (Fed), Jerome Powell. The discussion centered around the independence of the central bank, a principle that Powell staunchly defended amidst repeated pressure from Trump.

Jerome Powell’s visit to the white House was at the request of President Donald Trump.

“A Less Beneficial Situation”

“President Powell said that he and his colleagues (…) will set monetary policy, as provided for by law…based only on a meticulous, objective and apolitical analysis.”

For several months, Donald Trump has openly criticized the Fed, notably Jerome Powell, for what he perceives as a delay in lowering interest rates. Thes rates significantly influence the cost of borrowing for both businesses and individuals.These criticisms, frequently enough aired publicly, were apparently reiterated directly to Jerome Powell during their meeting.

Karoline Leavitt,spokesperson for Donald Trump,stated in a press conference that Donald Trump “Said he thought that the president of the Fed made a mistake by not lowering interest rates,which places us in a less advantageous situation compared to China and other countries” where central banks have recently implemented rate cuts.

“Apolitical”

According to a statement released by the Fed, jerome Powell used the meeting to emphasize the central bank’s independence. The statement indicated that Jerome Powell did not share “Its anticipations in monetary policy, except to emphasize that its trajectory would depend only on the economic data to come and their implications”. He further stressed, “Finaly President Powell said that he and his colleagues (…) will set monetary policy, as provided for by law, in order to reach full employment and price stability and will ensure that their decisions are only based on a meticulous, objective and apolitical analysis”.

This marks the first formal discussion between the two since Donald Trump’s return to office in January. Donald Trump has consistently expressed his views on monetary policy, a departure from conventional norms. It’s worth noting that Donald Trump himself appointed Jerome Powell to lead the Fed during his initial term. Despite this, Donald Trump has been critical, even derisively calling him “M. too late” and an «immense loser», and has reportedly explored options to remove Jerome Powell, whose term extends for another year.

Concerns about potential interference with the Fed’s independence, a cornerstone of the US economy, have unsettled financial markets. While Donald Trump stated in April that he had “Not intention” to dismiss Jerome Powell, he continues to advocate for lower interest rates.Such a move could stimulate the American economy, particularly as experts foresee a potential slowdown due to Donald Trump’s protectionist trade policies. though, the Fed has indicated that its primary concern is managing inflation, which could be exacerbated by tariffs.