- Trump met with Fed Chair Powell but monetary policy wasn’t officially discussed.
- Trump continues pressuring the Fed to cut rates, calling Powell “Too Late” on Truth Social.
- Markets expect no rate cuts until September as the Fed holds its ground amid tariff concerns.
President Trump finally sat down with Fed Chair Jerome Powell on Thursday, breaking the silence since his return to the White House. The meeting, held at Trump’s request, touched on the usual suspects—jobs, inflation, overall economic vibes—but according to the Fed, monetary policy talk? Off the table. Supposedly.
In a short release, the Federal Reserve said Powell “did not discuss his expectations” for rate direction and kept things high-level. Just the facts, no forecasts. He made it clear, again, that policy decisions will ride on fresh economic data—not political pressure. The Fed added that their process stays “careful, objective, and non-political.” Whether you believe that, well… depends who you ask.
Trump Wants Cuts, Like Yesterday
The White House didn’t jump to offer details. Not shocking. But the timing here is tricky. Trump’s been hammering the Fed—especially on Truth Social—to slash rates. He says the economy needs juice. The Fed, on the other hand, is walking a tightrope between stable prices and job growth, all while Trump’s new tariffs might add more heat to inflation.
Trump’s May 17 post wasn’t exactly subtle: “Too Late Powell,” he blasted, calling the Fed chief “legendary” for dragging his feet. The quote was loud, in all caps, and loaded with the usual Trump flair. Whether it moved markets? That’s debatable, but the message was loud and clear—he wants cuts, now.
Powell Isn’t Asking for Invitations
This was Trump and Powell’s first official meeting since the new term began. Powell had said earlier in May that he wouldn’t go knocking for a sit-down. “Never asked a president for a meeting. Never will,” he told reporters. So yeah, this one was on Trump.
What the Fed Might Do Next
As of now, the Fed’s likely to hold off on more cuts until the outlook clears up. With tariffs still fogging up the forecast, traders are betting the next real chance for a rate cut will come in September—no dice for June or July. Late 2024 saw the Fed slash rates by a full percent, but since then, it’s been a wait-and-see game.
Markets are edgy, and Trump’s commentary only stirs the pot more. Whether Powell and his team hold the line—or cave to pressure—could shape the economy’s path into 2026. For now, the messaging stays neutral. But the politics? Anything but.
