Powell-Trump Meeting After Critical FED Statement

Federal Reserve (FED) Chairman Jerome Powell and U.S. President Donald Trump held an important meeting at the White House. The press release issued by the FED after the meeting shed light on expectations regarding monetary policy and the decision-making process.

In the FED statement, it was emphasized that Chairman Powell did not share his expectations regarding monetary policy during the meeting. Instead, Powell expressed that the direction of monetary policy would be shaped solely by incoming economic data, and that the effects of these data on the economic outlook would be carefully evaluated.

One of the most striking points of the statement was Powell’s emphasis that he and the members of the Federal Open Market Committee (FOMC) would make decisions based only on careful, objective, and politically neutral analyses. Powell highlighted that monetary policy would be determined in line with the goal of achieving maximum employment and price stability within the legal framework.

This statement serves as a response to the questions raised in the public and markets regarding the independence of the FED in recent times. While Trump’s past criticisms of Powell regarding interest rate policies are known, the message released by the FED following this meeting once again demonstrates the institution's determination to act independently of political pressures.

From a market perspective, although the FED's statements do not provide a clear signal regarding interest rate policy in the short term, they confirm that economic data will continue to be decisive in the central bank's decisions. This means that investors and economists will closely monitor economic indicators in the upcoming period.