Powell on Meeting With Trump: 'I've Never Asked for a Meeting With any President, and I Never Will'

Central Bank

Forex

Summary:

The central bank chair and his colleagues also made it clear with their words and actions Wednesday that they are not yet aligned with Trump’s calls for lower rates ahead of any economic slowdown.

Federal Reserve Chairman Jerome Powell on Wednesday pushed back on political pressure from the White House, telling reporters that President Trump "doesn't affect our doing our job at all" and that "I've never asked for a meeting with any president, and I never will."

The central bank chair and his colleagues also made it clear with their words and actions Wednesday that they are not yet aligned with Trump’s calls for lower rates ahead of any economic slowdown.

Fed policymakers on Wednesday voted unanimously to maintain the Fed's benchmark interest rate in the range of 4.25%-4.5%, a mark reached at the end of 2024 after cutting rates by a full percentage point last fall.

The Fed, Powell said, does not "need to be in a hurry" as it evaluates how Trump’s tariffs will affect employment and inflation and whether talks with America's largest trading partners change the economic outlook.

"I don’t think we can say which way this will shake out," he told reporters during a press conference that followed the Fed's rate decision.

Nevertheless he made it clear he is concerned about the effect Trump's tariffs could have: "My gut tells me that uncertainty for the path of the economy is extremely elevated."

The decision to hold rates steady on Wednesday came after a public campaign by Trump in recent weeks to urge the Fed and Powell to cut rates as his administration rolls out a series of aggressive tariffs on goods imported from major trading partners.

In doing so, the president also lobbed a series of insults at Powell, calling him a “total stiff” and a “major loser” while accusing him of being late to act.

"There can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," the president posted on his social media website, Truth Social, on April 21, saying that "'Preemptive Cuts' in Interest Rates are being called for by many."

He also said that Powell's "termination can't come fast enough" before later clarifying that he had no intention of removing Powell before his term is up in May 2026.

Powell was asked for his reaction to Trump saying he would keep Powell in place and he said he had nothing more to say. He has previously said he intends to serve out his term and that his removal is not permitted by law.

"I've pretty much covered that issue," he said Wednesday.

He was also asked whether Trump's calls for lower rates affect his job or the decision made Wednesday. "Doesn't affect doing our job at all," he said.

Later in the Wednesday afternoon press conference he was asked by Yahoo Finance why he hadn't met with Trump.

"I've never asked for a meeting with any president, and I never will," he said, adding that it is not up the Fed chair to seek out an audience with the occupant of the Oval Office.

"It’s always comes the other way: 'a president wants to meet with you,' but that hasn’t happened."

Source: Yahoo Finance

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China–U.S. Trade War

The Federal Reserve held interest rates steady on Wednesday as U.S. President Donald Trump’s tariffs continued to cloud the central bank’s economic outlook.

At a target range of 4.25% to 4.5%, the Fed was reluctant to change its benchmark borrowing rate for a fourth straight time. The decision was widely expected, despite weeks of pressure from Trump on Federal Reserve Chair Jerome Powell to start slashing borrowing costs.

In a statement, the Federal Reserve flagged heightened levels of economic uncertainty, underscoring a data-dependent approach to future policy rate adjustments. The central bank added that risks of higher unemployment and higher inflation have recently risen.

“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the Fed said. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.”

“The tariff increases announced so far have been significantly larger than anticipated,” Powell said in a post-decision press conference. “All these policies are still evolving, however, and their effects on the economy remain highly uncertain.”

Although Trump’s tariffs have dented consumer sentiment, the U.S. labor market has so far remained robust. U.S. employers added 177,000 jobs in April, surpassing consensus estimates, while the unemployment rate was unchanged at 4.2%, the U.S. Bureau of Labor Statistics said last week.

Inflation has also cooled, inching closer to the Fed’s 2% goal, as Trump’s tariffs threaten to upend trade relationships between the U.S. and other major economies worldwide.

A core measure of the Personal Consumption Expenditures Price Index (PCE), which strips out volatile food and energy prices, has long been the Fed’s preferred inflation gauge. It rose 2.6% in the 12 months through March, marking a slowdown from core PCE’s 3% annual rise in February.

On Wednesday, traders foresaw a 28% chance that the Fed will cut rates at the conclusion of its June meeting, per CME FedWatch.

Among Trump’s tariffs, 145% levies on goods from China are among the heftiest. However, U.S. Treasury Secretary Scott Bessent is scheduled to meet in Switzerland with officials from China later this week, suggesting representatives from both nations are now open to de-escalation.

The People’s Bank of China also moved to support an economy hit by Trump’s 145% tariffs, lowering lenders’ reserve requirement ratio by 50 basis points and reducing its policy interest rate by 0.10 basis points, among other stimulative measures aimed at specific industries.

After an extended period of tariff-fueled turmoil, investors grew relieved last month when the president unveiled a 90-day pause on most reciprocal levies. However, as a July 8 deadline draws closer, investors continue to await for negotiations to result in trade deals.

Powell said that Trump calling for lower interest rates “doesn’t affect” how officials at the central bank are doing their job, or their willingness to wait and see how the economy evolves.

“We’re always going to do the same thing, which is we’re going to use our tools to foster maximum employment and price stability,” he said.

source : decrypt

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China–U.S. Trade War

Economic

The Trump administration is considering exempting car seats, baby strollers, cribs and other essential items for transporting children from tariffs on China up to 145%, Treasury Secretary Scott Bessent said on Wednesday.

Bessent said under questioning from Democratic Representative Ayanna Pressley at a House of Representatives Financial Services Committee hearing that those exemptions were under consideration. Pressley, of Massachusetts, noted that more than 3.5 million babies are born annually and almost all strollers are made in China. "Now that cost is going up," she said.

In 2018, the Trump administration exempted some products produced in China from 25% tariffs including bicycle helmets and child-safety furniture such as car seats and playpens. However, car seat component parts, cribs, bassinets, diaper bags and wooden safety gates were not exempted.

Chris Peterson, the CEO of Newell Brands, the maker of Graco strollers, car seats and other children's goods, said last week on an earnings call that approximately 97% of baby strollers and 87% of baby car seats in the U.S. are sourced from China. The company has hiked prices of imported baby gear products by about 20% because of tariffs.

Peterson said the company has not priced in the latest 125% tariff hike and has temporarily halted shipments from China as it sells a few months of inventory.

"At some point, we will begin to run out of inventory. Retailers will begin to run out of inventory and we will turn back on reordering from China," he said. "When that happens, because the whole industry sources from China, we would expect that we and the rest of the industry will take additional pricing to offset the tariff cost."

Source: Reuters

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Commodity

Energy

U.S. energy groups are asking President Donald Trump's administration to exempt liquefied natural gas tankers from a new rule that will require producers to move an increasing percentage of their exports on U.S.-built vessels as part of a broader push to revive domestic shipbuilding.

The U.S. is the world's No. 1 LNG exporter at $34 billion annually and the Trump administration has been a supporter of the industry in his push for energy dominance.

In a move that shocked the industry, the U.S. Trade Representative (USTR) announced April 17 that LNG producers would have to transport 1% of their exports on U.S.-built ships starting in April 2028. That percentage would escalate to 15% in April 2047 and beyond.

That could put the U.S. LNG industry at a disadvantage to its peers around the world because there aren't enough U.S.-built ships to meet the requirement, the American Petroleum Institute (API) said in an April 23 letter to U.S. Energy Secretary Chris Wright and National Energy Dominance Council Chair Doug Burgum seen by Reuters. Burgum is also U.S. Interior Secretary.

It "risks counteracting the significant progress the Trump Administration has made towards reducing uncertainty and unleashing U.S. LNG," API CEO Mike Sommers wrote in that letter. API counts as members some of the world's largest energy companies, such as Exxon Mobil, Chevron and Cheniere Energy.

Individual exporters that do not comply could lose their export licenses, even though the percentages apply to the overall industry and to ships that exporters do not own or control, industry groups warned.

"They have little control over their ability to comply with USTR's new requirements but ultimately face the consequences of not doing so," Sommers said in the letter.

"We will continue working with USTR and the Department of Energy in support of feasible and durable policies that benefit consumers and advance American energy dominance," Aaron Padilla, API's vice president of corporate policy, told Reuters in a statement late on Tuesday.

Representatives from the USTR and White House press office did not immediately respond to requests for comment. USTR proposed the rules as part of a larger effort to counter China's growing commercial and military dominance on the high seas.

There are now 792 LNG carriers in operation globally, according to shipping consultancy AXSMarine.

LNG ships from South Korea and Japan dominate that group with 703 combined. China, which aims to become a LNG tanker powerhouse, built 58. Five come from U.S. shipyards - though those 1970s-era American made vessels are laid up and not currently in use, AXSMarine said.

South Korea remains the dominant builder with 232 LNG carriers currently on order. China, while still behind, is rapidly expanding its footprint with 101 LNG carriers on order, AXS Marine said.

U.S. shipyards cannot turn out vessels fast enough to meet the USTR deadline, the Center for LNG told Reuters in a statement.

"There are no such vessels in existence today, and building them would take decades, making compliance impossible for the industry," Charlie Riedl, executive director at the Center for LNG, said in a statement on Wednesday.

The USTR requirement for 1% of LNG exports to be transported on U.S.-built vessels would require as many as five American-built ships by the end of the decade, which is not feasible, API CEO Sommers said in the letter.

That's because it would take as long as five years to build one LNG carrier at either of the two U.S. shipyards with docks long enough to build such a ship, Sommers said.

"We urge the Administration to exempt crude oil and refined product imports and exports - consistent with this Administration's approach to exempt these same products from baseline and reciprocal tariffs," Sommers wrote.

Vehicle carrier operators also hope to win relief from new rules that would levy hefty U.S. port fees on all of their foreign-built vessels. USTR also announced those unexpected rules on April 17.

Source: Reuters

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Commodity

Gold and silver futures prices are lower in midday U.S. trading Wednesday, on some profit-taking following gains scored earlier this week and on a slight uptick in risk appetite today. The just-released Federal Reserve FOMC statement following the conclusion of its two-day meeting saw the central bank make no changes in U.S. monetary policy, as expected by the marketplace. The statement said the U.S. economic expansion remains “solid,” but the risks of higher inflation and unemployment have risen. The statement also said FOMC members see uncertainty increasing regarding the U.S. economic outlook. Gold and silver prices saw no significant price reactions to the FOMC news. June gold was last down $28.90 at $3,393.90. July silver prices were last down $0.596 at $32.785.

Traders now await the press conference from Fed Chair Jerome Powell, which will be very closely scrutinized for clues on the trajectory of Fed monetary policy in the weeks and months ahead. Wording on inflationary pressures will also be very important to the marketplace, as will the central bank’s latest take on trade tariffs and the global trade war.

U.S. stock indexes are weaker in afternoon trading. Risk appetite had improved just a bit overnight as reports say U.S. and Chinese officials are set to meet in Switzerland late this week to discuss trade. U.S. Treasury Secretary Scott Bessent will lead the U.S. delegation. However, the marketplace does not expect much results from this meeting and the U.S. stock indexes lost altitude as the day session progressed.

In other news, China’s central bank said today it will lower its interest rates and inject more liquidity into its financial system in an effort to boost the Chinese economy. The moves by the People’s Bank of China are not seen as aggressive.

Traders and investors are keeping an eye on developments in India and Pakistan. Reports say Pakistan has vowed to retaliate after India carried air strikes with 26 people reported killed. India said it carried out air strikes on nine terrorist camps in Pakistan and the disputed region of Kashmir. India said it targeted the planners of the Pahalgam attack that claimed 25 lives in late April as a result of a terrorist attack. Said broker SP Angel: “We would not be surprised if the attacks were pre-cleared with the Pakistan government. It might be difficult for the Pakistan government to attack and contain certain terrorist groups within its own territory.”

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures prices are lower and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.275%.

Gold weaker, moves little on FOMC statement that had no big surprises_1

Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract/record high of $3,509.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $3,209.40. First resistance is seen at the overnight high of $3,448.20 and then at $3,475.00. First support is seen at the overnight low of $3,367.00 and then at Tuesday’s low of $3,332.10. Wyckoff's Market Rating: 7.5.

Gold weaker, moves little on FOMC statement that had no big surprises_2

July silver futures bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $34.015. The next downside price objective for the bears is closing prices below solid support at $31.00. First resistance is seen at the overnight high of $33.48 and then at $34.015. Next support is seen at today’s low of $32.725 and then at $32.50. Wyckoff's Market Rating: 6.0.

Source: kitco

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Economic

The Federal Reserve held interest rates steady Wednesday for the third meeting in a row, defying President Trump’s calls for the central bank to again loosen monetary policy while also warning of increased economic uncertainty.

Fed chairman Jerome Powell in his afternoon press conference did not offer any hints about moves in the months ahead, saying the central bank does not "need to be in a hurry" as it evaluates how Trump’s aggressive tariffs affect employment and inflation.

"I don’t think we can say which way this will shake out."

Nevertheless he made it clear he is concerned about the effect those tariffs could have: "My gut tells me that uncertainty for the path of the economy is extremely elevated."

Policymakers voted unanimously to maintain the Fed's benchmark interest rate in the range of 4.25%-4.5%, a mark reached at the end of 2024 after cutting rates by a full percentage point last fall.

Fed officials noted in a statement that uncertainty about the economic outlook has "increased further," but said the economy has continued to expand at a "solid pace" despite swings in net exports that affected data during the first months of 2025.

A GDP report covering the first quarter recently showed the US economy contracted for the first time in three years due largely to a rush by importers to beat the start of Trump's tariffs.

Fed officials on Wednesday also expressed concern that "risks of higher unemployment and inflation have risen," but that at the moment policymakers view the job market as "solid," noting that the unemployment rate has stabilized at a low level in recent months.

An April jobs report released Friday showed the labor market remained resilient even in the weeks after Trump's "Liberation Day" announcements shook markets.

The decision to hold rates steady on Wednesday came after a public campaign by President Trump in recent weeks to urge the Fed and Powell to cut rates as his administration rolls out a series of aggressive tariffs on goods imported from major trading partners.

In doing so, the president also lobbed a series of insults at Powell, calling him a “total stiff” and a “major loser” while accusing him of being late to act.

He also said that Powell's "termination can't come fast enough" before later clarifying that he had no intention of removing Powell before his term is up in May 2026.

Powell, when asked about Trump's calls for lower rates, said that talk "doesn’t affect doing our job at all."

Powell again made clear Wednesday that the central bank will continue to wait for greater clarity while weighing how Trump’s tariffs will affect both sides of its mandate for stable prices and full employment.

He acknowledged, as he has before, that the Fed may find itself in a place where its two mandates are in tension and it will have to make a choice about which to emphasize.

“We haven’t faced that question in a very long time” but emphasized that it is “not one that we face today” and “we may never face it.”

Nevertheless “we have to keep it in our thinking.”

Source: finance.yahoo

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Commodity

China–U.S. Trade War

Oil prices edged lower on Wednesday as investors priced in a build in gasoline inventories in the U.S. ahead of the U.S.-China trade talks this weekend.

Brent crude futures were down 77 cents a barrel, or around 1.24%, at $61.38 a barrel by 1:50 p.m. ET (1750 GMT), while U.S. West Texas Intermediate crude was down 73 cents, or 1.24%, lower at $58.36 a barrel.

Both benchmarks plunged to four-year lows this week after OPEC+ decided to speed up output increases, stoking fears of oversupply at a time when U.S. tariffs have increased concerns about demand.

The U.S. and China are due to meet in Switzerland, which could be the first step toward resolving a trade war disrupting the global economy.

The trade talks between the world's two largest economies come after weeks of escalating tensions that have seen duties on goods imports between the countries soar well beyond 100%.

"While the meeting may signal a thaw, expectations for a breakthrough remain low," said Thiago Duarte, market analyst at Axi. "Unless the U.S. receives major trade concessions, further de-escalation seems unlikely," he said.

Investors also awaited the upcoming Fed update on Wednesday. They expect the policy rate to remain in the 4.25%-4.50% range until the Fed's July 29-30 meeting.

Meanwhile, both benchmarks lost some ground after data from the Energy Information Administration (EIA) showed gasoline inventories in the U.S. rose unexpectedly last week, raising concerns among analysts of weak demand ahead of a major driving holiday in the U.S. later this month.

"This is the first bad report for gasoline in a couple of weeks. The refiner had been cranking up the utilization rate. But today in this report it went backwards," said Bob Yawger, director of energy futures at Mizuho.

However, U.S. crude inventories fell by 2 million barrels to 438.4 million barrels in the week, compared with analysts' expectations in a Reuters poll for an 833,000-barrel draw.

Limiting the losses, some U.S. producers have signalled that they would cut spending, cautioning that the country's oil output may have peaked.

Additionally, conflict in the Middle East between Israel and the Houthis increases the geopolitical risk premium, said Tamas Varga, an analyst at PVM.

Volatility is expected to persist on quicker-than-expected OPEC+ supply, while U.S. policymaking remains unpredictable, he added.

Reporting by Nicole Jao in New York, Seher Dareen in London and Jeslyn Lerh in Singapore; Editing by Kate Mayberry, Saad Sayeed, Alex Lawler, Ros Russell, Ed Osmond, Louise Heavens, Jan Harvey and Diane Craft