President meets with Fed Chairman Powell

WASHINGTON — President Donald Trump met with Federal Reserve Chair Jerome Powell on Thursday and the two discussed the economy but not Powell's outlook for interest rates, officials reported. The Fed said Trump initiated the meeting.

Powell told Trump the central bank would make decisions about the short-term interest rate it controls "based solely on careful, objective, and non-political analysis." The Fed's rate typically influences borrowing costs across the economy, including for mortgages, car loans and business borrowing.

The meeting came after Trump assailed Powell for not reducing the Fed's key interest rate. Trump claims there is "no inflation" and so Powell should cut rates; federal agencies report prices are up 2.3% over last year. Trump earlier this year suggested he'd fire Powell, whose term as chair ends in May 2026, but backed off after financial markets reacted negatively.