Fed Chair Powell Says He's 'Never Asked' For Meeting With Any President And 'Never Will' Amid Trump's Sharp Criticism

Federal Reserve Chair Jerome Powell said on Wednesday that the central bank is keeping its policy rate unchanged at 4.25% to 4.5%, adding that it was "well positioned to wait for greater clarity" before making any changes.

He cited uncertainty from recent policy shifts, including President Donald Trump's administration sharply hiking tariffs on trading partners.

In his opening remarks following the Federal Open Market Committee meeting, Powell said the labor market remains strong and inflation has eased from mid-2022 highs.

However, he warned that inflation remains above the Fed's 2% target and near-term expectations have ticked higher due to trade policy.

"If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," Powell said.

He added that the inflation impact could be short-lived or more persistent, depending on the size of the tariffs and how quickly they filter through to consumer prices.

Following Powell's remarks, benchmark indices Nasdaq, S&P 500, and the Dow Jones Industrial Average ended Wednesday in the green, with futures rising late at night.

The Invesco QQQ Trust (QQQ), the SPDR S&P 500 ETF Trust (SPY), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) finished between 0.4% and 0.6% higher.

Retail sentiment on Stocktwits ended on a 'bullish' note for SPY and QQQ, while the DIA settled at 'neutral.'

During his press conference on Wednesday, Powell was asked why he had not met with President Trump in his current term.

"I've never asked for a meeting with any president, and I never will. I wouldn't do that. There's never a reason for me to ask for a meeting. It's always been the other way," he replied.

"I don't think it's up to a Fed chair to seek a meeting with the president, although maybe some have done so; I've never done so, and can't imagine myself doing that."

Since taking office, Trump has repeatedly pressured Powell to cut interest rates, arguing that the conditions warranted it. At one point, he called the Fed chair a "loser" and even threatened to fire him.

Powell also admitted that the U.S. federal debt was on "an unsustainable path," but stopped short of offering advice to Congress.

"I think they don't need my advice and our advice on how to do fiscal policy any more than we need their advice. It's on Congress to figure out how to get us back on a sustainable path."

Powell declined to speculate on the summary of economic projections for June or provide a threshold unemployment rate that would trigger action.

"Some of the big swings in GDP make it a little more difficult to assess the economy, but those numbers really won't change things for the policy outlook," he said. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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