Powell Meets With Trump To Discuss Economy, Interest Rates
A week after testifying before Congress, Federal Reserve Chairman Jerome Powell met with President Donald Trump and Treasury Secretary Steven Mnuchin at the White House on Monday.
Powell traveled to the White House at Trump’s invitation to discuss the economy, growth, employment and inflation, the Fed said in a statement.
The Fed said Powell’s comments were consistent with his remarks at his congressional hearings last week, when he indicated the central bank would leave interest rates on hold for the foreseeable future unless there is a material change in the economic outlook.
Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy, the Fed said.
The Fed chief also told Trump that the Federal Open Market Committee will make its monetary policy decisions based solely on careful, objective and non-political analysis.
In a subsequent post on Twitter, the president described the sit-down with Powell as a “very good & cordial meeting.”
“Everything was discussed including interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.” Trump tweeted.
Trump renewed his attacks on the Fed in a speech to the Economic Club of New York last Tuesday, accusing the central bank of putting the U.S. at a “competitive disadvantage to other countries.”
The president claimed the U.S. economy and the stock markets would be even stronger if the central bank would take his advice and slash interest rates further.
“But we all make mistakes, don’t we?” Trump said in an apparent reference to his decision to nominate Powell as Fed Chairman.
The Fed is scheduled to hold its next monetary policy meeting December 10-11, with CME Group’s FedWatch Tool currently indicating a 99.3 percent chance the central bank will leave interest rates unchanged after three straight rate cuts.
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