Tensions between Donald Trump and the US Federal Reserve escalated on Thursday, with the central bank issuing a rare public statement reaffirming its independence after the president renewed his push for interest rate cuts.
The strongly worded three-paragraph note followed a morning meeting between Trump and Fed chair Jerome Powell at the White House.
According to the statement, Powell made clear that monetary policy decisions would continue to be based on economic data, not political pressure. “Policy will depend entirely on incoming economic information,” the Fed said, adding that decisions would reflect “careful, objective, and non-political analysis”.
Trump, by contrast, insisted Powell was “making a mistake” by not lowering rates. The exchange highlights a growing rift, with the Fed resisting political interference while Trump intensifies criticism ahead of the election.
The clash comes days after a US court blocked part of Trump’s tariff agenda and signals growing opposition to his economic plans. While presidents have traditionally respected the Fed’s independence, Trump has repeatedly tried to sway policy, going as far as threatening to fire Powell.
Powell, who was appointed by Trump in 2018, has warned that further tariffs could stoke inflation and said the Fed is “in no hurry” to cut rates.