On Thursday (local time), US President Donald Trump invited Federal Reserve Chairman Jerome Powell to the White House for his first face-to-face meeting since taking office in January.

Following the meeting, the Fed released an official statement affirming that the central bank would maintain its current monetary policy course. «Fed Chairman Powell did not speak about his expectations for monetary policy,» it stated. He emphasized to the President that any future direction would depend entirely on incoming economic data and its implications for the outlook.

Fed Chairman Jerome Powell (Image: Shutterstock)

Ha had told Trump that he and his colleagues at the Fed «will set monetary policy as required by law to support maximum employment and stable prices, and will make these decisions based solely on careful, objective, and non-political analysis».

Tensions not Eased

White House spokeswoman Karoline Leavitt, said she and the president had seen the Fed's statement and confirmed its contents, as reported by «Reuters». However, she added: «The president has said that he believes the Fed chairman is making a mistake by not lowering interest rates, which puts us at an economic disadvantage to China and other countries.»

This has not defused the tensions between Trump and Powell. In recent months, Trump has called the central banker either a fool, a major loser or «Mr. too late» and even threatened to dismiss him.

Market Does not Expect Interest Rate Hike until September

At the beginning of May, the Fed's Open Market Committee again left the key interest rate in the range of 4.25 to 4.50 percent, where it has been since December. It was also signaled that this level could be maintained for a few more months. They will wait until there is more clarity about the consequences of the customs policy. 

The tariffs and political uncertainty could slow down the economy and lead to persistently higher inflation, according to concerns.

The financial markets are currently pricing in an interest rate cut by the Fed in September and a second one in December.