Former President Donald Trump with then-Federal Reserve Chair Jerome Powell in the White House on Tuesday. Here’s what they had to say about the state of the U.S. economy. The meeting, though, immediately turned combative as the two men traded barbs with Trump attacking Powell’s monetary policy choices. This meeting comes on the heels of a disappointing jobs report from ADP. That was the lowest month-over-month reading since March of 2023.
According to Powell, during their conversation, Trump sounded pretty angry that Powell had announced he was hitting pause on interest rate increases. He went on to dub Powell a “big loser”—“Too Late! Trump’s ongoing criticism of Powell has intensified since he retook office, with the former president repeatedly hinting at the possibility of firing Powell before the latter’s term concludes in May 2026.
Despite this, for his part, Trump seemed to backpedal on that position during Wednesday’s meeting, saying he’s got “no intention” to fire Powell. The former president’s rhetoric has shifted in recent months, indicating a more measured approach even as he continues to express dissatisfaction with Powell’s leadership.
“ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE” – Donald Trump
Trump’s comments reflect growing concerns about economic performance, particularly as the weak ADP report is set to be followed by the Bureau of Labor Statistics’ monthly U.S. nonfarm payrolls report in just two days. He pointed out that European countries have decreased their rates on nine separate occasions. He recommended that the U.S. take similar steps to accelerate long-run economic growth.
Powell maintained that decisions regarding interest rates would be based on non-political analysis and economic data rather than political pressure. His defense of the Fed’s independence has been consistent throughout his tenure, despite Trump’s persistent attacks.
Yet the timing of the meeting underscores, once again, the former president’s bitter, years-long animus to the leadership of the central bank. Together, they are charting difficult economic waters. Unlike his predecessors, Trump does not shy away from voicing, and often tweeting, his opinions on U.S. monetary policy. For now, we can’t really know what his views will lead the Fed to do going forward.