Overview

• The meeting, held at Trump’s invitation, was the first face-to-face encounter between the two since his January inauguration.
• Trump privately told Powell that holding rates at 4.25%–4.5% is a “mistake” that weakens U.S. competitiveness, particularly against China.
• Powell affirmed that the Federal Open Market Committee will set monetary policy based only on objective economic indicators and apolitical analysis.
• A recent Supreme Court ruling prevents presidents from removing the Fed chair solely over policy disputes, reinforcing the bank’s independence.
• Markets now forecast the Fed’s first rate cut in September, with a second reduction likely by December as tariff uncertainties persist.