Bank decisions must be 'non-political,' US Fed Chair tells Trump; US Prez says Powell 'making a mistake'

US Federal Reserve chair Jerome Powell - File Photo

In a rare and high-stakes meeting at the White House on Thursday, Federal Reserve Chair Jerome Powell reaffirmed the central bank's commitment to political independence during a sit-down with President Donald Trump. The meeting, initiated by Trump, comes amid escalating tensions over interest rate policy and the Fed's resistance to political pressure.

Powell told Trump that the bank's decision-making process must remain "non-political."

Powell "did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook," the Fed said in a statement, describing the highly unusual meeting between the two men.

Meanwhile, Trump told the Fed Chair that he was 'making a mistake' by not cutting rates, the White House said.

The meeting follows a series of public criticisms from Trump, who has repeatedly urged the Fed to cut interest rates, accusing Powell of playing politics. Earlier this year, Trump even suggested that Powell's "termination cannot come fast enough," raising concerns about potential interference in the Fed's operations.

Despite these tensions, Powell has maintained that the Fed's independence is protected by law and that he intends to serve out his term, which runs through May 2026. He has also stated that he has never requested a meeting with any president and does not intend to do so.