Fed Says Powell Unexpectedly Met With Trump, Mnuchin On Monday Morning

Moments ago, the Fed announced that in a previously unannounced meeting that was not on the official White House Calendar, Fed Chair Powell met with Trump and Mnuchin at the White House “to discuss the economy, growth, employment and inflation.” That boilerplate statement was followed by another, with the Fed noting that “Powell’s comments were consistent with his remarks at his congressional hearings last week. He did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy.”

What is notable is the Fed’s addition that “Powell said that he and his colleagues on the Federal Open Market Committee 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.”

Considering Trump’s relentless Twitter barrage urging the Fed to cut rates more, and even go negative, as well with Trump’s periodic invocation that the Fed launch QE (which is odd since the Fed did launch QE last month), one can only imagine what Trump really said to Powell.

The full statement is below:

Statement on Chair Powell’s meeting with the President and the Treasury Secretary

At the President’s invitation, Chair Powell met with the President and the Treasury Secretary Monday morning at the White House to discuss the economy, growth, employment and inflation.

Chair Powell’s comments were consistent with his remarks at his congressional hearings last week. He did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming information that bears on the outlook for the economy.

Finally, Chair Powell said that he and his colleagues on the Federal Open Market Committee 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.