Overview

• President Donald Trump met with Fed Chair Jerome Powell for the first time since January to discuss growth, employment, and inflation.
• Trump argued that keeping rates high is a mistake that puts the U.S. at an economic disadvantage to China and other competitors.
• Powell said the Fed will base policy decisions solely on incoming economic data and legal mandates free from political influence.
• The Fed has kept its benchmark federal-funds rate at 4.25–4.5 percent since December as it monitors uncertainty created by Trump’s tariffs and their inflationary risk.
• Investors now foresee at least one quarter-point rate cut in September and a possible second cut by December.