US President Donald Trump has expressed optimism about his meeting with Federal Reserve Chair Jerome Powell, suggesting that the central bank’s head might be willing to lower interest rates. The two men met on Thursday at the US central bank’s headquarters in Washington, where Trump criticized the cost of renovating two historic buildings.
“We had a very good meeting … I think we had a very good meeting on interest rates,” Trump told reporters on Friday. Despite their tense interaction during the visit, Trump said he did not intend to fire Powell, as he has frequently suggested. Instead, he called Powell a “very good man” when speaking to reporters, a stark contrast to his earlier description of Powell as a “numbskull” for not reducing borrowing costs.
The meeting comes as the central bank is expected to decide on interest rates next week. Economists widely expect the Fed to leave its benchmark interest rate in the 4.25 percent – 4.50 percent range. Powell had previously stated that rate cuts might have been possible if not for Trump’s imposed tariffs and the resulting economic uncertainty.
Trump’s tariffs have been a point of contention, with Powell maintaining that the central bank must preserve its independence from the White House. In late May, the Fed reiterated that it makes “decisions based solely on careful, objective, and non-political analysis.”
The visit also coincides with potential trade deals on the horizon. Trump is expected to meet UK Prime Minister Keir Starmer, where the two sides might approve an already announced trade deal. However, trade negotiations with Canada have stalled, and Trump suggested that his administration could set a tariff rate unilaterally on Canada.
“We haven’t really had a lot of luck with Canada. I think Canada could be one where there’s just a tariff, not really a negotiation,” Trump said. He also estimated a 50-percent chance of Washington striking a deal with the European Union to reduce import tariffs.
Trump has been pressing his case for reduced interest rates, claiming that “we’ve wiped out inflation.” However, inflation actually rose to 2.7 percent last month. The Fed has held rates steady since December, and Powell has maintained that the central bank’s decisions are guided by careful analysis rather than political pressure.