Trump meets with Powell for the first time since returning to the White House, warns him not cutting interest rates is a 'mistake'

President Donald Trump met Thursday with the head of the Federal Reserve, Jerome Powell, for the first time since his return to the White House in January.

As confirmed by the White House, the president reiterated to Powell in private what he usually says in public: that he is making a mistake by not cutting interest rates.

"The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries," White House spokeswoman Karoline Leavitt told a news conference. “The president has been very vocal about that both publicly—and now I can reveal—privately, as well.”

Despite Trump's warnings, Powell stood firm in front of the president, refusing to discuss the outlook for monetary policy, according to a report in the Wall Street Journal.

According to a statement from the Fed itself, Powell reportedly made it clear that the Fed's decisions will be made solely based on "careful, objective and non-political analysis."

So far, Powell is one of the few officials in the entire administration who still maintains autonomy from Trump, especially since the president has made it clear through his spokespeople that the FED chairman will keep his job.

When Trump publicly considered firing Powell, markets reacted adversely, prompting the president to withdraw his threat.

Since taking over as Fed chairman in 2018, Jerome Powell has met in person with Donald Trump on two occasions, both in 2019. His last meeting with a head of state was in 2022, when he met with President Joe Biden amid inflation reaching 40-year highs.

Although inflation has come down markedly since then, it is still above the Fed's target. Trump has repeatedly expressed dissatisfaction with the current interest rate and has made it clear that he expects a reduction.

The exact reason for Thursday's meeting was not confirmed. According to a White House official, it was "simply to say hello and catch up." However, a close source affirmed that, in private, both usually repeat the same arguments they have already stated in public.