Interest Rates Face-Off: Fed Chair Powell vs. Trump, Again!

Inside the Meeting Between Fed Chair Powell and President Trump

In a closed door meeting on Thursday, Fed Chair Powell met with President Donald Trump at the White House. This was their first in-person meeting since 2019. Trump invited him to talk about the U.S. economy. During the meeting, Trump told the chair that not lowering interest rates is a big mistake. He said it can hurt America’s economy, especially when compared to countries like China.

Source: Official Website of Fed

The White House said the President has spoken to Fed Chair Powell about interest rates before, both in public and now again in private. However, there was no talk about the reigning head losing his job. The meeting covered many topics like jobs, inflation, and economic growth. It happened shortly after a court decision stopped most of the trade tariffs Trump had introduced earlier this year. This meeting was a big deal as Fed Chair Powell and the US President have a record of not always agreeing.

Jeromy P. Stands Firm on Political Independence

The central bank functions as the country's money manager for a stable economic governance . After the meeting, the central governmental agency released a statement. It said Fed Chair Powell did not talk about any future interest rate plans. Instead, he explained that the they will only make decisions on facts based on the economy not getting affected by politics. He told Trump that the Federal Reserve will stay focused on data and will be careful before changing any policies. They want to be fair and not take sides in politics.

White House Spokesperson Karoline Leavitt confirmed that Trump pushed Fed Chair Powell for lowering interest rates but he stuck to his plan to focus on data, not on opinions.

So far in 2025, interest rates have continued to be the same, between 4.25% and 4.50%. The central bank believes keeping it steady is the best choice while the economy deals with changes, including new tariffs. Officials are waiting to see how these changes will impact prices and growth. They’ve warned that tariffs could slow the economy or make goods more expensive. His term is set to end in May 2026.

What This Means for Crypto and the Economy

Fed Chair Powell made it clear the they are not rushing to lower rates. That matters a lot even for crypto markets. When interest rates are high, investors often avoid risky assets like Bitcoin and other cryptocurrencies. They prefer safer options that give good returns without much risk.

But if it drops, crypto could benefit. Lower rates often weaken the dollar, and that can push people toward digital assets. Also, cheaper borrowing costs can lead to more money flowing into the crypto market. If the supervisor of financial institutions and other banks ever decides to cut it again, crypto prices could rise.

For now, Powell’s focus on data and stability means that both traditional and digital markets will need to wait and watch. The outcome of this meeting could shape future interest rate talks, and crypto investors should keep an eye on what the guardian of money decides next.