WASHINGTON (AP) -- President Donald Trump met with Federal Reserve Chair Jerome Powell on Thursday and the two discussed the economy but not Powell's outlook for interest rates, the Fed said.

Powell told Trump that the central bank would make decisions about the short-term interest rate it controls "based solely on careful, objective, and non-political analysis." The Fed's rate typically influences borrowing costs across the economy, including for mortgages, car loans, and business borrowing.

The meeting comes as Trump has assailed Powell for not reducing the Fed's key interest rate, calling him "Too Late Powell." The president initiated the meeting, the Fed said.

Trump argues that there is "no inflation" and so Powell should cut rates, though such a move might not necessarily reduce the borrowing costs consumers face. Inflation is down substantially from a year ago, yet it remains above the Fed's 2% target. Trump has also called Powell a "fool" and earlier this year suggested he would fire the Fed chair.

After financial markets reacted negatively, Trump said he had "no intention" of removing Powell, whose term as chair ends in May 2026.

The meeting is the first during Trump's second term, though the two met and had lunch together in his first term. Fed chairs regularly meet with Treasury secretaries but less often with presidents, given that the Fed's interest rate decisions are intended to be separate from political concerns.

Earlier this month, Powell said he had never requested a meeting with a president and added, "I never will," suggesting it was inappropriate given the Fed's political independence.

"I can't imagine myself doing that," Powell said at a press conference May 7. "It's always--comes the other way: A President wants to meet with you."