Trump and Powell Actually Agree About Monetary Policy

Although President Donald Trump and Federal Reserve Chairman Jerome Powell have been at odds on Twitter and in official statements, the two share remarkably similar views about the economy and what needs to be done to improve it. The trick for the chairman will be to carry out monetary policy without appearing to cave to the president — and the president, meanwhile, needs to give the chairman some room to work.

The official responses from both parties following their meeting this week suggest that they might finally realize this. Just after the meeting Trump offered a critical but notably restrained tweet (only later did he note that he “protested” high interest rates). Powell’s statement, terse even by the tight-lipped standards of the Fed, simply reiterated that he will be guided by its mandate of stable prices and maximum employment.