🇺🇸🏛️Powell Meets Trump as Fed Faces Collision Course With the White House

Today, Fed Chair Jerome Powell held a closed-door meeting with President Donald Trump at the White House. The agenda: inflation, labor market, GDP — and growing tensions over the Fed’s rate policy.

The timing is critical. Just hours ago, revised Q1 data confirmed GDP contraction at -0.2%, while jobless claims rose to 240K — the worst level since late 2023. All eyes now turn to the June FOMC meeting, where the market sees a 58% chance of a rate cut.

But behind the scenes, this isn’t just monetary debate — it’s institutional warfare. Trump’s long-standing feud with Powell erupted earlier this year, when legal attempts were made to dismiss him — blocked only by the Supreme Court. Powell stayed in office, but political pressure never left the room.

The Fed Chair reportedly reaffirmed that any future rate decisions will rely solely on incoming economic data — a subtle pushback to growing demands from the Trump administration for a pre-election cut.

Yet markets remain skeptical. Treasuries rallied post-meeting, hinting at expectations of imminent easing. Meanwhile, Powell’s comment that monetary policy remains “objective and apolitical” sounded more like defense than confidence.

Is the Fed holding its line — or negotiating in private? With growth stalling and politics accelerating, the independence of the Fed may be entering its most fragile phase since 2008.

Will Powell bend or break as political gravity intensifies?#AMAGE