President Donald Trump is remarkably consistent in more than one way … and one of those ways includes keeping people guessing.
After long dismissing the idea of having a private sit-down with Federal Reserve Chairman Jerome Powell, Trump did an apparent about-face and invited one of the nation’s most powerful, influential individuals to sit down with him anyway.
The Federal Reserve issued a startling press release, making it rather clear that Trump had initiated the unexpected meeting with Powell.
“At the President’s invitation, Chair Powell met with the President today at the White House to discuss economic developments including for growth, employment, and inflation. Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook,” the release stated.
In other words, Powell would give no specific insight whatsoever into what he planned to do – or not do – with interest rates.
He did, however, indicate that he would use a “non-political” approach in setting monetary policy.
“Finally, Chair Powell said that he and his colleagues on the FOMC 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,” the release concluded.
Naturally, the Trump administration was displeased by Powell’s refusal to budge on interest rates.
As noted by The Hill, White House Press Secretary provided insight into Trump’s mindset, specifically in terms of what likely motivated the request for the meeting in the first place.
“The president did say that he believes the Fed chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries,” Leavitt asserted.
China certainly does seem to be in the administration’s crosshairs in more than one way, and economics are just the start.
Economics are precisely why Trump has been fuming over Powell for months, leading some to wonder if Trump might attempt to fire Powell.
However, Leavitt was decidedly less detailed when a reporter asked her whether or not Trump intends to replace Powell.
“No,” Leavitt replied tersely, adding neither additional context nor explanation.
While Trump has indicated that he wishes to retain Powell, he has also repeatedly expressed frustration at the Fed Reserve Chairman for refusing to lower rates amid rampant economic uncertainty.
Trump also previously stated that meeting with Powell in person would be akin to “talking to a wall,” though he met with him anyway.
Vance has expressed similar sentiments, declaring Powell to be “a nice guy” who happened to have been “wrong about almost everything.”
Even if Trump wanted to remove Powell at this point in time, he would be unlikely to do so based upon a fairly recent Supreme Court ruling.
The ruling, which upheld Trump’s firings of the members of two U.S. independent labor boards, made it clear that Trump would not be able to fire Powell in a similar manner.
“The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,” the Supreme Court sternly remarked in its written decision.
However, if there is one thing that Trump has proven, time after time again … When he has the will, he virtually always seems to find a way.
Author: Ofelia Thornton
