Trump met with Powell at White House following months of Fed attacks

Daniel Fowler
November 19, 2019

"Just finished a very good & cordial meeting at the White House with Jay Powell of the Federal Reserve".

The Fed's policy-setting Federal Open Market Committee has cut interest rates three times this year, saying that Trump's trade war in particular poses a danger to the economy, which has slowed since the start of the year. "Too strong a Dollar hurting manufacturers & growth!", he said.

"Chair Powell's comments were consistent with his remarks at his congressional hearings last week", the Fed statement read, referring to the hearings held by the Joint Economic Committee of Congress and the House Budget Committee, when Powell suggested that the central bank is unlikely to adjust interest rates anytime soon as long as the USA economy remains along its present path.

The Fed in its statement was careful to note what wasn't discussed: Powell's expectations for future monetary policy.

The chat lasted 30 minutes and, according to Trump, the two leaders discussed everything from negative interest rates to inflation to dollar strength to trade.

"Debt loads of businesses are historically high, but the ratio of household borrowing to income is low relative to its pre-crisis level and has been gradually declining in recent years", Powell said in his congressional testimony.

Trump has for greater than a 12 months charged the Fed with undermining his financial insurance policies by, in his view, maintaining rates of interest too excessive, and depriving the USA of what Trump believes are the advantages of the destructive charges of curiosity set by the European and Japanese central banks.

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However after its final assembly policymakers signaled they'd decrease charges no additional until the financial system takes a critical flip for the more serious. But Powell is concerned by what appears to be Trump's willingness to intervene in monetary policy.

'Jay Powell and the Federal Reserve Fail Again.

Trump and Powell had last met in February, over dinner at the White House.

At the end of October, the Fed cut rates by a quarter-percentage point for the third time this year to cushion the economy against the U.S.

Powell has been a near-constant target of pressure by the administration.

Fed chairs are appointed to four-year terms, but once confirmed by the Senate are meant to be insulated from White House political pressure over how to manage monetary policy. They can only be removed "for cause", not over a disagreement over policy.

Meetings between Fed chairs and presidents are not unprecedented but they are infrequent, as opposed to the almost weekly sessions that central bankers have with the head of the Treasury.

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