In a meeting that marks their first since the start of President Donald Trump’s second term, Federal Reserve Chair Jerome Powell sat down with the President at the White House on Thursday, May 29.
According to a statement from the Fed, Powell made it clear that monetary policy decisions remain data-driven and free from political influence.
The Fed’s confirmation came after weeks of public pressure from Trump, who has repeatedly used his Truth Social account to call for interest rate cuts. CNBC reported on the meeting and provided additional context from both the White House and Powell himself.
From the Fed’s own release:
“At the President’s invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation.
“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.
“Finally, Chair Powell said that he and his colleagues on the FOMC will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective, and non-political analysis.”
Read on for the highlights.
What We Know
According to both the Fed and White House sources, the President used the opportunity to reiterate his view that Powell is making a mistake by keeping rates elevated, a stance he’s made public in several Truth Social posts.
One example from May 17:
Despite the rhetoric, no change in policy was discussed. Powell has previously stated he’s never requested a meeting with a sitting president and never will.
Meanwhile, the futures market suggests the Fed won’t move on rates until at least September. Markets are currently pricing in no changes at the June or July meetings, with one additional cut possible before the end of 2025.
The Fed last cut rates in December 2024 by 25 basis points, putting it a full percentage point from its peak.
Bottom Line
There’s no shift in policy for now. But with inflation, employment, and tariffs all in play, agents should keep an eye on what’s coming this fall. Whether or not the Fed moves in September may come down to what the data shows over the summer.
