Federal Reserve Chair Jerome Powell delivered a forceful defense of the central bank’s response to the COVID-19 crisis on Sunday.
Marking the 50th anniversary of his own graduation from Princeton, Powell used the platform to reassert the Fed’s role as a stabilizing force during the pandemic and to emphasize the importance of central bank autonomy at a time when political pressure is mounting.
“With little warning, economies around the world came to a hard stop,” Powell told graduates. “The possibility of a long, severe, global depression was staring us in the face. Everyone turned to the government — and to the Federal Reserve in particular — as a key first responder.”
Pandemic Decisions in Focus
Powell specifically defended the Fed’s decision to slash interest rates to near zero and undertake massive asset purchases, including Treasury bonds and mortgage-backed securities, as a means of preventing financial system collapse in 2020. While he acknowledged the Fed was slow to respond to rising inflation in 2021, he insisted the early actions averted the worst economic outcomes.
He praised the work of career public servants at the central bank, calling their contributions “critical to avoiding a global depression.”
Trump’s Renewed Attacks
The speech comes amid a renewed barrage of criticism from President Trump, who has called for Powell’s removal and accused the Fed of harming the economy with tight monetary policy. Trump, who has insisted inflation is no longer a threat, has demanded aggressive interest rate cuts to stimulate growth ahead of his re-election campaign.
His rhetoric has included personal attacks — labeling the Fed chief as “Too Late Powell” for the delayed rate hikes in response to 2022 inflation. Trump has also claimed the Fed’s independence has become a cover for political partisanship, and he’s floated former Fed governor Kevin Warsh as a possible replacement.
Independence Under Threat
The dispute highlights a broader battle over central bank independence at a time when Trump’s tariff policies are raising concerns within the Fed about upward pressure on prices and downward pressure on growth.
According to internal Fed analysis, a 10% hike in tariffs could increase U.S. inflation by up to 1.2 percentage points, complicating the bank’s dual mandate of price stability and full employment.
Powell, for his part, has firmly stated he will not resign if requested by the president, raising the specter of a constitutional showdown. A pending Supreme Court case regarding presidential authority over independent agencies could have implications for Powell’s tenure.
“I don’t think that that decision will apply to the Fed, but I don’t know,” Powell said recently.
Broader Implications
The dispute between the Fed and the White House marks one of the most politically charged moments in modern U.S. monetary policy history. Analysts warn that undermining the Fed’s credibility could weaken investor confidence and complicate future crisis responses.
While Powell’s remarks in Princeton avoided direct references to Trump by name, the timing and tone of the address left little doubt about the message: the central bank acted decisively in 2020 and remains committed to its independent mandate — even as political winds shift.
Iran accused the U.S. of "destroying diplomacy" following airstrikes on its nuclear facilities and vowed a proportionate military response, with details to be decided by its military.
The Pentagon concluded a high-stakes press briefing Saturday afternoon following the U.S. strikes on Iran’s nuclear facilities, outlining the scale and success of the mission while stressing the door remains open to diplomacy.
Global investors are bracing for significant market turmoil when trading reopens, with analysts predicting a sharp spike in oil prices and a flight to safe-haven assets following the United States' announcement of military strikes against three Iranian nuclear facilities.
A chorus of condemnation emerged from Latin America on Sunday as leaders from Chile, Cuba, Venezuela, Colombia, and Bolivia denounced the United States for its recent airstrikes on three Iranian nuclear facilities.
The United States' military strike on three Iranian nuclear facilities Sunday triggered sharply divided reactions from the international community, with Israel lauding the move as a historic decision while Iran, the United Nations, and numerous other nations condemned the attack.
The International Atomic Energy Agency (IAEA) will hold an emergency Board of Governors meeting today after U.S. attacks on Iranian nuclear facilities.
Australia’s Prime Minister Anthony Albanese said Canberra supports the U.S. strike on Iran and calls for de-escalation and diplomacy.
China has condemned the U.S. strike on Iran’s nuclear sites, warning it has undermined Washington’s credibility and risks triggering a broader regional crisis.
Some Democratic and Republican lawmakers are urging Congress to limit President Donald Trump’s military actions in Iran, warning against deeper U.S. involvement in the escalating Middle East conflict.
The International Atomic Energy Agency (IAEA) confirmed that U.S. strikes hit entrances to tunnels storing part of Iran’s enriched uranium at the Isfahan nuclear site.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
The 2025 G7 Leaders’ Summit was held June 15–17 in Kananaskis, Alberta, under Canada’s presidency. Prime Minister Mark Carney framed the meeting around priorities of protecting communities, energy and climate security, the digital transition, and future partnerships.
The USS Nimitz is heading to the Middle East amid tensions between Israel and Iran. The U.S. aircraft carrier has a decades-long history in the region, from the 1979 hostage crisis to modern deployments, often serving as a key asset during periods of rising friction with Iran.
The International Atomic Energy Agency (IAEA) will hold an emergency Board of Governors meeting today after U.S. attacks on Iranian nuclear facilities.
Australia’s Prime Minister Anthony Albanese said Canberra supports the U.S. strike on Iran and calls for de-escalation and diplomacy.
China has condemned the U.S. strike on Iran’s nuclear sites, warning it has undermined Washington’s credibility and risks triggering a broader regional crisis.
Some Democratic and Republican lawmakers are urging Congress to limit President Donald Trump’s military actions in Iran, warning against deeper U.S. involvement in the escalating Middle East conflict.
The International Atomic Energy Agency (IAEA) confirmed that U.S. strikes hit entrances to tunnels storing part of Iran’s enriched uranium at the Isfahan nuclear site.
The International Atomic Energy Agency (IAEA) will hold an emergency Board of Governors meeting today after U.S. attacks on Iranian nuclear facilities.
Australia’s Prime Minister Anthony Albanese said Canberra supports the U.S. strike on Iran and calls for de-escalation and diplomacy.
China has condemned the U.S. strike on Iran’s nuclear sites, warning it has undermined Washington’s credibility and risks triggering a broader regional crisis.
Some Democratic and Republican lawmakers are urging Congress to limit President Donald Trump’s military actions in Iran, warning against deeper U.S. involvement in the escalating Middle East conflict.
The International Atomic Energy Agency (IAEA) confirmed that U.S. strikes hit entrances to tunnels storing part of Iran’s enriched uranium at the Isfahan nuclear site.
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