Fed chair tells Trump that interest rates will depend on economic data, not campaign demands
The Federal Reserve issued a public statement Thursday holding firm on the central bank’s independence, following a morning meeting between Fed Chair Jerome Powell and former president Donald Trump at the White House.
The brief, three-paragraph memo stressed the Fed’s nonpartisan approach to monetary policy and responded to growing pressure from Trump to cut interest rates ahead of the November election.
“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 statement read.
Powell reaffirmed that the Fed “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.”
The central bank, which rarely comments on private meetings with presidents, appears keen to draw a line amid ongoing attempts by Trump to influence monetary policy decisions.
During Thursday’s White House press briefing, press secretary Karoline Leavitt acknowledged the Fed’s message, saying the statement is “correct,” but added that Trump “did say that the Fed chair is making a mistake by not lowering rates.”
Trump has repeatedly criticized Powell in public and on social media, claiming the central bank is slow to act. Earlier this year, following a round of newly announced tariffs that rattled markets, dubbed by Trump as “Liberation Day,” he posted:
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly.”
The Fed has held its benchmark interest rate steady at 4.25%–4.50%, citing inflation concerns and employment risks, especially in the context of ongoing trade-related volatility. Despite Trump's calls, Powell has maintained that officials are in “no hurry” to lower rates, pointing to economic uncertainty and the inflationary risk of elevated tariffs.
Powell, who was appointed to his role by Trump in 2018, has consistently warned that Trump's aggressive trade actions could fuel inflation and complicate the economic recovery. His resistance to political pressure has led Trump to escalate his rhetoric.
“‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue,” Trump wrote online after the Fed’s most recent rate decision.
Trump had previously threatened to fire Powell, though legal experts question whether a president has the authority to do so.
Read next: Supreme Court signals support for Fed autonomy amid broader executive power shift
While the Supreme Court recently allowed Trump to dismiss officials from the National Labor Relations Board, the ruling also noted that the Federal Reserve is a “uniquely structured, quasi-private entity,” making it more insulated from direct presidential control.
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