President Donald Trump met Federal Reserve chair Jerome Powell at the White House on Thursday, marking their first meeting since the beginning of Trump’s second term. During the encounter, Trump rebuked Powell for not reducing borrowing costs, but the Fed Chair stood firm, insisting that any policy decisions would be based solely on economic data — not presidential pressure.
The meeting followed months of sustained criticism from Trump aimed at Powell, whom he has frequently derided. It was arranged at the president’s request.
“Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook,” the Federal Reserve said in a statement.
Trump has publicly labelled Powell a “fool” and “a major loser,” and has even stated that his removal “cannot come fast enough.” His primary grievance has been the Fed’s reluctance to cut interest rates at the pace he desires.
The Fed’s decision last week to hold interest rates steady at 4.25%–4.5% prompted further criticism from Trump. White House press secretary Karoline Leavitt later stated: “The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries."
Powell, who was appointed by Trump in 2018 to lead the US central bank, is due to complete his term in May 2026. He has largely refrained from responding to Trump’s repeated attacks, emphasising the Fed’s commitment to data-driven decisions aimed at achieving its dual mandate: stable prices and maximum employment.
Speaking earlier this month, Powell said he had never initiated a meeting with a sitting US president. “I don’t think it’s up to a Fed chair to seek a meeting with the president, although maybe some have done so. I’ve never done so, and I can’t imagine myself doing that,” he said.
Although Trump has recently moderated his attacks, he continues to argue that the Fed is lagging behind in reducing interest rates. However, he has stopped short of demanding Powell’s resignation. In an NBC News interview aired earlier this month, Trump said he would not dismiss Powell, noting: “I’ll get to change him very quickly anyway … you know, it’s in a very short period of time.”
Trump softened his stance after senior administration officials warned of potential turmoil in the financial markets should he attempt to dismiss Powell. Investors had grown increasingly concerned that the Fed’s independence — widely viewed by economists as essential to economic stability — was under threat.
While Trump appears to have stepped back for now, speculation remains that his administration may seek other ways to alter the Fed’s leadership.