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Fed Chairman Jerome Powell meets Trump, Mnuchin in Economics

President Donald Trump also left Jerome Powell, the new chairman of the Federal Reserve, on Thursday, November 2, 2017.

Carlos Barry | Reuters

President Donald Trump and Federal Reserve Chairman Jerome Powell, who were arguing over the direction of monetary policy, met Monday to discuss various economic issues.

The two, along with Finance Minister Stephen Mnuchin, discussed the economy as a whole, as well as growth, employment trends and inflation, the central bank said.

Powell's comments were in line with his remarks during his congressional hearing last week, "the Fed said.

Trump said on Twitter that the meeting was" good and heartfelt. "

In separate panel meetings. on Capitol Hill last week, Powell said he thought monetary policy was appropriate and likely to be maintained unless there were some significant changes in economic prospects.

He also repeatedly said that Fed policy was not is influenced by political considerations, this is a key point given that Trump has been vocal in his criticisms of Powell, saying that interest rates are not needed in 201

8 and that the central bank has been too slow to ease this year's policy.

Fed statement:

At the invitation of the President, President Powell met with the President and the Secretary of the Treasury on Monday morning at the White House to discuss economics, growth, employment and inflation.

President Powell's comments were in line with his remarks at his congressional hearing last week. He did not discuss his expectations for monetary policy, except to emphasize that the path of the policy would depend entirely on the incoming information that holds the prospects for the economy.

Finally, Chairman Powell said that he and his colleagues at the Federal Open Market Committee would determine monetary policy as required by law to support maximum employment and stable prices and make these decisions based only on careful , objective and non-political analysis.

CNBC reached out to the White House for further comment.

This is not the first time Powell and Trump have met. The two had dinner together in February in a meeting that the White House described as involving "a very good exchange of views."

However, Trump has since been ruthless in his criticism, at one point calling the Fed staff "bonehead" so as not to cut interest more aggressively. Trump nominated Powell as Fed chairman in February 2018 as Janet Yellen's successor.

It is common practice for meetings of Fed chairmen and presidents to meet, although Trump is Fed-based, unusual in how public he has become. Previous presidents have been known to try to influence interest rates, but rarely have they been so open about it.

Yellen and former President Barack Obama, for example, met in April 2016, but reportedly did not even discuss interest rates.

"I would not foresee that even in a confidential environment, the president would have a conversation with the Fed chairman, which would undermine her ability to make these critical monetary policy decisions independently," White House press secretary Josh Ernest said before the meeting, according to a USA Today report at the time.

However, President Richard Nixon used the behind-the-scenes twisting of his arms to get his federal shaman, Arthur Burns, to lower rates targeting the 1972 election. [19659020]
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