Recently, Jerome Powell—the Fed’s (Federal Reserve) Chairman—had a meeting with President Donald Trump. This was their first meeting since Trump appointed Powell for the post and follows months of tough criticism from Trump regarding his nominee and the Fed. In a statement, the central bank stated it was an “unofficial dinner” in the White House residence “for discussing the latest economic developments and the prospect for employment, growth, and inflation.” The dinner was also attended by Richard Clarida (the Fed’s Vice Chairman) and Steven Mnuchin (Treasury Secretary).
Considering the president’s past criticism, it had been not clear why Powell and Trump would meet. A senior administration executive confirmed the reunion and stated it was “two on a side.” The official added, “It was much more informal than an Oval Office get together. They had a very good sharing of views.” The announcement from the Fed reported Powell’s remarks to Trump “were stable with his comments at his press conference of the past week.” Powell was stated not to have conversed monetary policy prospects “excluding to stress that the trail of policy would depend completely on incoming financial information and what that states for the outlook.” Trump has been exceedingly critical of the Fed for increasing interest rates, including asserting the Fed “uncontrollable” in October.
On a similar note, recently, the Fed was in news as its executive stated that rate hike pause places the U.S. development on track. The Fed’s conclusion to discontinue raising interest rates places an “essentially healthy” US financial system on track to supplementary growth, Neel Kashkari—Minneapolis Federal Reserve Bank President—suggested recently. “I believe we still have scope to run in the U.S. economy. The U.S. economy is deeply healthy,” he stated.