The President and the Fed Chief: A Clash of Economic Views

The Federal Reserve Chair, Jerome Powell, had a sit-down with President Trump. This was their first meeting in Trump's second term. Trump wanted to talk about interest rates. He thinks they should be lower. Powell, however, made it clear that the Fed's decisions are based on economic data, not political pressure. The meeting happened at the White House. It was Trump's idea. He has been criticizing Powell for not lowering interest rates fast enough. He has even called Powell names in public. Powell, on the other hand, has been quiet. He has said that the Fed's job is to keep prices stable and employment high. He has never asked to meet with a president before. Trump appointed Powell to lead the Fed in 2018. His term ends in 2026. Powell has said he won't quit, even if Trump wants him to. He believes in the Fed's independence. Trump, however, has hinted that he might try to change the Fed's leadership. He has even talked about firing Powell. But he has backed down, for now. The Fed's independence is important. It helps keep the economy stable. Trump's threats to fire Powell worried investors. They feared that the Fed's independence was at risk. The Supreme Court has said that Trump can't fire senior officials from independent agencies. But some worry that he might try to change the Fed's leadership in other ways. Trump has been criticizing the Fed for not lowering interest rates. He thinks it puts the US at a disadvantage. Other countries have lower interest rates. But Powell has said that the Fed's decisions are based on economic data. He won't let political pressure influence him. This clash of views shows the tension between politics and economics. It also shows the importance of the Fed's independence.