Trump says he believes Powell is ready to start lowering rates

President Donald Trump on Friday expressed confidence the Federal Reserve will start lowering interest rates, a day after he met with central bank Chair Jerome Powell.

The president indicated the meeting took a positive tone and believes the Fed is ready to provide the monetary policy easing he has been seeking for months.

“I think we had a very good meeting on interest rates. And [Powell] said to me ... very strongly, the country is doing well,” Trump told reporters. “I got that to mean that I think he's going to start recommending lower rates.”

Powell and his fellow policymakers have been reluctant to lower rates as they wait to see the impact Trump's tariffs have on inflation. In fact, one argument Powell has made against cutting is that the economy is strong enough that it can withstand higher rates as officials watch how the data evolves.

Prior to Trump's remarks, White House budget director Russell Vought kept up the heat on the Fed's renovation project, pushing the case for a review of the central bank while pressing for lower interest rates.

Vought echoed Trump's desire for the Fed to start easing monetary policy as a way to help the economy and specifically the housing market.

“There's a whole host of issues with regard to the Fed, and we want to make sure that those questions get answered over time,” Vought said during the “Squawk Box” appearance. “This is not a pressure campaign on the Fed chairman.”

The tone following Thursday's meeting was more conciliatory after months — and even years — of rancor between the Trump White House and the Powell Fed.

Both sides characterized the tour as positive, with a Fed official releasing a statement Friday saying the central bank was “honored” to welcome Trump as well as other Republican officials.

“We are grateful for the President's encouragement to complete this important project,” the Fed spokesman said. “We remain committed to continuing to be careful stewards of these resources as we see the project through to completion.”