Trump’s Economic Team Resumes Regular Meetings With Fed Chair Powell Amid Policy Shifts – CryptoMode
The Trump administration is reestablishing direct communication with the Federal Reserve, with White House National Economic Council Director Kevin Hassett confirming regular meetings with Fed Chair Jerome Powell.
This marks a return to a strategy employed during Trump’s first term, ensuring the administration’s economic perspective is clearly conveyed to the central bank.
Renewed Dialogue Between White House and the Fed
Speaking on CBS’s Face the Nation, Hassett emphasized that these discussions aim to foster an open exchange of economic views while respecting the Fed’s independence. He stated,
“Jay Powell is an independent figure, and we fully respect the Fed’s autonomy. However, the president’s perspective also matters—he is, after all, the leader of the United States.”
The announcement comes at a time of heightened economic uncertainty, with inflationary pressures persisting and financial markets closely monitoring the Federal Reserve’s stance on interest rates. Trump, known for his vocal criticism of the Fed during his first term, has long advocated for lower interest rates to spur economic growth. Now, with his return to office, questions arise about how his administration will approach monetary policy.
Market Implications and Rate Expectations
The Federal Reserve’s reluctance to commit to immediate rate cuts has frustrated investors hoping for monetary easing. Powell’s testimony before the Senate Banking Committee earlier this month reiterated that the Fed sees no urgency in adjusting rates despite market anticipation. The most recent CPI report, showing 3.0% annual inflation, slightly above forecasts, has reinforced this cautious approach.
Meanwhile, interest rate futures suggest just a 2.5% probability of a rate cut at the Fed’s next meeting in March, according to data from the CME FedWatch Tool. The lack of imminent easing has weighed on risk assets, including equities and cryptocurrencies, which tend to benefit from a looser monetary environment.
While Trump’s administration favors a lower interest rate environment, Powell has signaled that any policy changes will be data-driven. The Fed remains focused on balancing inflation control with economic stability, and Powell has dismissed the idea of responding to political pressure. However, with Trump’s team maintaining a consistent dialogue with the Fed, analysts speculate that market expectations for rate cuts later in 2025 may still hold weight.
