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In a surprising move, Trump visited the headquarters of the Federal Reserve on Thursday. This visit drew widespread attention as it starkly contrasts with Trump's past criticism of Fed Chairman Powell.
Trump revealed to reporters after leaving the Fed building that his meeting with Powell was relaxed and pleasant, with no tension at all. This statement is surprising, as Trump has often criticized Powell's interest rate hike policies as being too aggressive.
When asked if he was considering replacing the Fed chair, Trump denied the possibility, stating that doing so would 'cause too much volatility.' This response seems to indicate that, despite Trump's frequent public criticism of the Fed's policies, he also recognizes the importance of maintaining stability in the financial markets.
Trump admitted that they did discuss the issue of interest rates. This is not difficult to understand, as interest rate policy has always been a focus for Trump, who has repeatedly called for interest rate cuts to stimulate economic growth.
However, Trump's sudden change in attitude has also sparked some speculation. Just a few days ago, he publicly criticized the Fed's policies, and now he describes the meeting as 'very pleasant.' This capricious attitude makes it difficult to grasp his true intentions.
For Powell, this situation may have become commonplace. The Fed has consistently emphasized its independence, free from political pressure. Nevertheless, the president's statements may still influence market expectations.
Although this meeting has temporarily eased tensions, considering Trump's past behavior patterns, it is difficult to predict how long this harmonious atmosphere will last. Financial markets and policy observers may need to continue to closely follow the interactions between the White House and the Fed, as this relationship has significant implications for the direction of economic policy.