Fed Chair Powell Reaffirms Independence; Warsh Signals Policy Stance

Federal Reserve Chair Jerome Powell met with President Donald Trump at the White House on November 18 and reiterated that the Fed will remain independent in setting monetary policy. He emphasized that future policy decisions will be based solely on economic data, aiming to maximize employment and maintain price stability, and he did not discuss any specific expectations for interest‑rate moves.

New Fed Chair Kevin Warsh, speaking after the latest policy meeting that left rates unchanged, highlighted a “speak less, act more” communication approach. He acknowledged earlier missteps in signaling and said the goal is to avoid premature commitments that could bind future decisions. The market reacted with 30‑year Treasury yields climbing to their highest level since 2007, though Warsh noted that inflation expectations remain low and the Fed remains confident of returning inflation to its 2% target.