Trump vs. The Fed: A Clash Over Interest Rates
U.S. President Donald Trump criticized Federal Reserve Chair Jerome Powell in a private White House meeting for not lowering interest rates. Trump believes this puts the U.S. at an economic disadvantage to China. Powell maintains that Fed decisions are based on economic data, not politics.
In a closed-door meeting held at the White House, President Donald Trump told Federal Reserve Chair Jerome Powell that he was making a 'mistake' by not reducing interest rates. This encounter reiterated Trump's persistent public criticisms of Powell's monetary policy decisions.
The meeting was convened upon the President's invitation and touched on various economic topics including growth, employment, and inflation. White House spokesperson Karoline Leavitt noted that Trump sees the Fed's current stance as detrimental to the U.S. competitive edge over nations like China.
Despite the criticisms, Powell emphasized that Federal Reserve decisions are grounded entirely in economic indicators and strive to maintain maximum employment and stable prices. While Trump has considered ousting Powell, recent legal interpretations suggest that the Fed Chair cannot be removed at the President's whim.
(With inputs from agencies.)
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