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.
Israel is reportedly pressuring the United States to use its most powerful non-nuclear weapon—the GBU-57A/B Massive Ordnance Penetrator (MOP)—in a strike against Iran’s heavily fortified Fordow Fuel Enrichment Plant, as tensions mount in the Middle East.
The United States has resumed processing student visa applications but now requires foreign applicants to disclose their social media profiles for scrutiny, as part of a broader national security directive.
North Korea launched over 10 rockets from near Pyongyang on Thursday, prompting fresh concerns in the region.
U.S. President Donald Trump hosted Pakistan’s army chief Field Marshal Asim Munir at the White House in a historic meeting, claiming credit for stopping the recent India-Pakistan conflict, though India denied any U.S. mediation.
The potential for U.S. military involvement in a conflict with Iran is revealing a rare rift within President Donald Trump's core political base, the "Make America Great Again" (MAGA) coalition.
Egypt’s first integrated solar and battery storage plant will deliver dispatchable clean energy, enhance grid stability and manage peak demand. The project is expected to generate approximately 3,000 GWh of clean energy and avoid up to 1.4 million metric tonnes of emissions per year.
Israel’s sweeping surprise attack on Iran last week marked a major escalation in tensions, with Israeli Prime Minister Benjamin Netanyahu declaring it had “struck at the head of Iran’s nuclear weaponization program.”
Kremlin spokesman Dmitry Peskov said Thursday that Ukraine “will have to understand and accept” the post-war realities, as Moscow signals openness to a third round of peace negotiations with Kyiv.
Israel has confirmed it carried out airstrikes on Iran’s only operational nuclear power plant in Bushehr, marking a significant escalation in the ongoing conflict.
European foreign ministers are set to meet Iran’s top diplomat in Geneva for urgent nuclear talks amid growing fears that the Israel-Iran conflict could spiral into a broader regional war.
Peace is no longer a dream. It is a discussion. On the streets of Baku and Yerevan, it is also a question, of trust, of foreign interests, and of who truly wants it.
Israeli strikes have reportedly targeted areas near the residences of Iran’s Supreme Leader Ayatollah Ali Khamenei and President Masoud Pezeshkian, according to the New York Times, citing local witnesses.
Azerbaijan Airlines (AZAL) has cancelled certain flights scheduled for 13th and 14th June amid recent escalation of situation in the Middle East and the closure of airspace in several countries for security reasons.
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.
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 17th, covering the latest developments you need to know.
Iran's foreign minister is expected in Istanbul on Saturday for a key Organisation of Islamic Cooperation (OIC) council meeting as regional tensions rise over Israel's strikes on Iranian nuclear sites.
The US Embassy in Qatar has temporarily barred its personnel from entering Al Udeid Air Base due to rising regional tensions linked to the ongoing conflict between Israel and Iran.
The World Bank has approved a $640 million loan to Bangladesh to help improve gas supply security and reduce dangerous air pollution in urban areas.
Kremlin spokesman Dmitry Peskov said Thursday that Ukraine “will have to understand and accept” the post-war realities, as Moscow signals openness to a third round of peace negotiations with Kyiv.
Israel has confirmed it carried out airstrikes on Iran’s only operational nuclear power plant in Bushehr, marking a significant escalation in the ongoing conflict.
Egypt’s first integrated solar and battery storage plant will deliver dispatchable clean energy, enhance grid stability and manage peak demand. The project is expected to generate approximately 3,000 GWh of clean energy and avoid up to 1.4 million metric tonnes of emissions per year.
Israel’s sweeping surprise attack on Iran last week marked a major escalation in tensions, with Israeli Prime Minister Benjamin Netanyahu declaring it had “struck at the head of Iran’s nuclear weaponization program.”
Kremlin spokesman Dmitry Peskov said Thursday that Ukraine “will have to understand and accept” the post-war realities, as Moscow signals openness to a third round of peace negotiations with Kyiv.
Israel has confirmed it carried out airstrikes on Iran’s only operational nuclear power plant in Bushehr, marking a significant escalation in the ongoing conflict.
European foreign ministers are set to meet Iran’s top diplomat in Geneva for urgent nuclear talks amid growing fears that the Israel-Iran conflict could spiral into a broader regional war.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment