On May 30, a meeting took place in the White House between Fed Chairman Jerome Powell and Donald Trump. The topics are serious: from rates to inflation. And although sparks flew between them before, both sides are now set on constructive dialogue. It seems they decided to talk like adults — without populism, but with an eye on real numbers.
Data-driven approach: Powell is not changing the tune
Powell made it clear: monetary policy is not about intuition, but about numbers. It's all by the book: there are data — there are decisions. He again reminded about the dual mandate of the Fed — maximum employment and stable prices. Trump, although he had criticized the rate before, clearly kept himself in check at the meeting and generally agreed with this approach.
Yes, the tension between them hasn't gone anywhere. But the very fact that they sat down and discussed inflation, employment, and economic growth already speaks volumes.
Quote from Powell:
"The Fed is keeping the rate in the range of 4.2–4.5%, as recorded in the latest minutes." — Hawaii Tribune-Herald
What this means for markets and investors
Any contact between the Fed and politicians is a signal for the markets. And traders know this. Such meetings can shift the charts, even if everything seems calm verbally.
Experts believe: if the Fed continues to stick to the data and does not yield to political pressure, it could stabilize the situation with interest rates. And this is a plus for businesses, investors, and those tired of economic swings.
