Trump, Powell Met For “Informal Dinner” At White House

Following numerous angry tweets by the president targeting the US central bank, and media reports that Trump has considered to fire Fed chair Powell unless he stops hiking, tonight Trump and Powell, together with Fed vice chair Richard Clarida, finally met face to face at a previously undisclosed “informal dinner” which included Steven Mnuchin – the man who recommended Powell for Fed Chair – according to a press release issued by the Fed late on Monday.

According to the brief Fed statement, the four met to “discuss recent economic developments and the outlook for growth, employment and inflation” with the Fed noting that Chair Powell’s comments in this setting, which were not recorded, “were consistent with his remarks at his press conference of last week” but more importantly, “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.”

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Powell also told Trump that he would set monetary policy “in order to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis.”

In other words, Powell told Trump, although we’ll never really know what was said, that the president got his dovish reversal and market rebound, just as he demanded, and if he could please get off Powell’s case.

The full press release is below.

Statement on Chair Powell’s and Vice Chair Clarida’s meeting with the President and Treasury Secretary

At the President’s invitation, Chair Powell and Vice Chair Clarida joined the President and the Treasury Secretary for an informal dinner tonight in the White House residence, to discuss recent economic developments and the outlook for growth, employment and inflation.

Chair Powell’s comments in this setting were consistent with his remarks at his press conference of last week. He 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.

Finally, Chair Powell said that he and his colleagues on the FOMC will set monetary policy in order to support maximum employment and stable prices and will make those decisions based solely on careful, objective and non-political analysis.

via zerohedge

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