WASHINGTON — The US central bank Federal Reserve or the Fed issued a rare and firm statement reaffirming its independence in determining monetary policy.

The move came shortly after Fed Chair Jerome Powell met with President Donald Trump at the White House amid growing pressure to cut interest rates, on Thursday (29/5).

In an official statement comprised of just three paragraphs, as reported by The Guardian on Friday (30/5), the Fed made it clear that interest rate decisions would be made in a non-partisan manner and entirely based on current economic data.

“Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook,” the statement read.

Powell also conveyed to Trump that he and fellow Fed officials would carry out their mandate under the law, namely to support maximum employment and price stability, guided by objective and non-political analysis.

Although typically reserved in its public communications, the Fed’s statement underscored the seriousness of its commitment to maintaining credibility as an independent institution—especially as Trump has repeatedly and publicly pressured Powell to lower interest rates.

White House spokesperson Karoline Leavitt acknowledged that the Fed’s statement was legally accurate. However, she also cited Trump’s view that Powell had made a grave mistake by refusing to cut rates.

Trump had earlier called for a rate cut after his new round of tariffs, announced on “Liberation Day” in early April 2025, sent US stock markets reeling.

In a social media post, Trump wrote: “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly.”

Since his appointment by Trump in 2018, Powell has consistently resisted political pressure to loosen monetary policy recklessly.

As recently as early May, he warned that high tariffs could stoke inflation and reiterated that the Fed was in no rush to cut rates.

Trump’s response was characteristically sharp. In another post, he referred to Powell as “‘Too Late’ Jerome Powell is a FOOL, who doesn’t have a clue.”

Trump has also threatened to fire Powell, although his authority to do so remains legally questionable.

Last week, the US Supreme Court ruled that Trump could dismiss members of the National Labor Relations Board (NLRB), but noted that the Fed is a “quasi-private entity with a unique structure,” and is likely not subject to unilateral presidential dismissal. (EF/ZH)