President Donald Trump announced on his Twitter that he had a meeting this Monday with Jay Powell, the chairman of the Federal Reserve System (Fed) and that it was very positive.
“Just finished a very good & cordial meeting at the White House with Jay Powell of the Federal Reserve. Everything was discussed including interest rates, negative interest, low inflation, easing, dollar strength & its effect on manufacturing, trade with China, E.U. & others, etc.,” the president wrote on his Twitter account @realdonaldtrump.
The Federal Reserve also reported that in an unannounced meeting—which was not on the official White House calendar—Chairman Powell met with President Trump and Treasury Secretary Steven Mnuchin at the White House “to discuss the economy, growth, jobs, and inflation,” marking the second face-to-face meeting between the two.
Previously, Powell had dinner with the president in February, and since then the two have maintained a telephone dialogue.
The Fed said in a statement, “Powell’s comments were consistent with his comments at his congressional hearings last week. He did not discuss his expectations for monetary policy, except to emphasize that the path of policy will depend entirely on incoming information that relates to the outlook for the economy.
Statement on President Powell’s meeting with the President and Secretary of the Treasury
“At the President’s invitation, Chair Powell met with the President and the Treasury Secretary Monday morning at the White House to discuss the economy, growth, employment and inflation.
Chair Powell’s comments were consistent with his remarks at his congressional hearings last week. He did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy.
Finally, Chair Powell said that he and his colleagues on the Federal Open Market Committee will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis.”
In his testimony before Congress last week, Powell called the economy a “star” and expressed his firm confidence that its record expansion will remain on track, according to Bloomberg.
Powell’s recent comments confirmed that the Fed believes it has done enough to keep the economy on track for now, that interest rates are now waiting for any major changes in the economy, and that monetary policy is now on a protracted hold, as long as the outlook remains favorable.
Previously, President Trump has been very critical of the Fed. In fact, he said on Twitter that the Fed has slowed the stock market and the economy, claiming that the stock market and GDP would have improved if the Fed had “done its job right.”
At the end of March, the president commented on Twitter that the economy “seemed very strong” despite the “unnecessary and destructive measures taken by the Federal Reserve.”
The president also said the GDP and stock market would be “much higher” if the Fed had not “wrongly raised interest rates.”
In fact, that’s what President Trump has emphasized most, reducing interest rates for even more sustained growth in the U.S. economy. In this sense, the Fed cut interest rates three times in the last four months and the economy continues to expand and is increasingly reliable, as the president anticipated.