In a meeting that’s not making many headlines but could shape the financial future of the nation, Federal Reserve Chairman Jerome Powell met with President Donald Trump at the White House amid a wave of incredibly strong economic data — the kind of data Powell has long been slow to act on.
According to CNBC, the U.S. economy is posting one of its strongest four-month starts in years:
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Inflation is falling: The Fed’s preferred measure dropped to 2.1% in April, beating forecasts.
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Incomes are rising sharply: Personal income surged 0.8% in April, nearly three times the forecasted gain.
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Trade deficit plummets: The largest monthly drop on record, showing a sharp shift in goods and services movement — driven, in part, by Trump-era tariffs.
“This is a GREAT four-month start to any year,” exclaimed CNBC’s Rick Santelli, noting that the momentum is undeniable.
Despite this, Powell continues to drag his feet on rate cuts. According to Yahoo Finance, the White House meeting involved President Trump pressuring Powell to recognize reality and ease monetary policy in response to these economic breakthroughs.
The Fed’s official statement claimed the meeting was about “growth, employment, and inflation,” but emphasized Powell “did not discuss his expectations for monetary policy.” The central bank insists it will remain “non-political.”
Yet critics say that’s simply not credible.
Trump Puts the Heat on Powell
President Trump, who has long blasted Powell for being sluggish and reactive, reportedly lectured the Fed chair during the meeting. Despite Powell’s assurances of neutrality, his continued refusal to cut rates in the face of strong economic indicators has led many to accuse him of playing politics — especially when it comes to Trump’s presidency.
“Powell is always too late to act — especially when Trump is in office,” said one White House insider.
The Fed’s Inaction Amid an Economic Boom
With inflation falling, incomes rising, and the trade deficit narrowing dramatically, economists and financial commentators alike are asking the same question:
What is Jerome Powell waiting for?
As Santelli put it, “Why don’t we give credit where credit is due? Income really is shooting up.”
The data paints a clear picture: the economy is heating up, and the Fed risks choking growth by holding rates too high for too long.