Fed Chair Powell met with Trump at the White House Thursday and told him rate decisions can't be political
CNBCMAY 31
Fed Issues Statement After Powell Meets With Trump
Above: U.S. Federal Reserve Chair Jerome Powell speaks at the Thomas Laubach Research Conference on May 15, 2025 in Washington, D.C. Image copyright: Andrew Harnik/Staff/Getty Images News via Getty Images
The Spin
Anti-Trump narrative
The Fed obviously felt it needed to take the unprecedented step of issuing a statement because Trump used this meeting to challenge Powell's authority. The Fed had to draw a line in the sand. Even the U.S. Supreme Court, which often sides with Trump, has determined the Fed doesn't fall under Trump's firing power. He's going to have to deal with the Fed's monetary policy, even as his tariffs make it harder for the Fed to do what he wants it to do.
Pro-Trump narrative
Inflation during the Biden administration did major damage to the mortgage market and the United States is at a competitive disadvantage and unable to grow freely while the Fed is holding interest rates steady. The time has come for Powell to relent and allow Trump's economy to thrive. Although the Supreme Court cut out an exception for the Fed, Trump may have no choice but to exercise his firing power and let the courts decide if it's legal.