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.
Chinese students at Harvard are caught in the middle of a growing political and immigration fight between the Trump administration and U.S. universities.
U.S. President Donald Trump said on Tuesday that Canada could contribute about $61 billion to the proposed "Golden Dome" missile defense system, part of a larger $175 billion project to build a space-based shield against missile threats.
The Trump administration has asked the US Supreme Court to overturn a judge’s nationwide order blocking its plan to quickly deport migrants to third countries — countries other than their own — without giving them a chance to claim fear of harm.
North Korea has issued a stark warning over U.S. President Donald Trump’s proposed “Golden Dome” missile defense system, accusing Washington of risking a new arms race by militarizing space and destabilizing nuclear deterrence.
U.S. President Donald Trump on Tuesday warned that Vladimir Putin is “playing with fire” by refusing to engage in ceasefire talks with Ukraine, as Russian forces make new territorial gains in the country’s northeast.
Sudan is on the brink of a serious health disaster as cholera and other deadly diseases spread across the country, warns aid group International Rescue Committee (IRC).
Sweden-based Volvo Cars announced plans to cut around 3,000 jobs, mostly office positions in Sweden, affecting about 15% of its white-collar workforce.
U.S. Health Secretary Robert F. Kennedy Jr. has announced that COVID-19 vaccines will no longer be recommended for healthy children and pregnant women — a move that has sparked sharp criticism from public health experts.
King Charles and Queen Camilla expressed deep shock and sadness after a car plowed into crowds celebrating Liverpool FC’s Premier League victory.
SpaceX is preparing to launch its ninth uncrewed test flight of Starship — the most powerful rocket ever built — with liftoff expected during a one-hour window.
AnewZ takes to the streets of Yerevan and Baku to ask a simple yet deeply complex question: How do you see peace between Armenia and Azerbaijan? In the first part of our special report, we hear the hopes, doubts, and scars still shaping people’s perspectives on both sides.
Anton Kobyakov, adviser to Russian President Vladimir Putin, claimed at the St. Petersburg International Legal Forum that the USSR’s dissolution was legally invalid and that the Soviet Union still exists under constitutional law, framing the Ukraine war as an “internal process.”
A car drove into crowds of Liverpool fans celebrating the club’s Premier League title in the city centre on Monday evening, injuring dozens including 4 children. A 53-year-old man believed to be the driver was arrested at the scene.
Kyiv faced a large-scale Russian drone and missile assault overnight, with explosions and gunfire echoing throughout the city, forcing residents to shelter in subway stations.
In a region long defined by conflict and complex history, AnewZ set out to hear the voices that matter most- those of the people.
With less than a week until Poland’s decisive 1 June run-off, every new survey suggests the country is heading for its tightest presidential finish in a generation.
French police arrest 24 over kidnapping plots targeting crypto figures
Sudan is on the brink of a serious health disaster as cholera and other deadly diseases spread across the country, warns aid group International Rescue Committee (IRC).
Sweden-based Volvo Cars announced plans to cut around 3,000 jobs, mostly office positions in Sweden, affecting about 15% of its white-collar workforce.
King Charles and Queen Camilla expressed deep shock and sadness after a car plowed into crowds celebrating Liverpool FC’s Premier League victory.
Sudan is on the brink of a serious health disaster as cholera and other deadly diseases spread across the country, warns aid group International Rescue Committee (IRC).
Sweden-based Volvo Cars announced plans to cut around 3,000 jobs, mostly office positions in Sweden, affecting about 15% of its white-collar workforce.
U.S. Health Secretary Robert F. Kennedy Jr. has announced that COVID-19 vaccines will no longer be recommended for healthy children and pregnant women — a move that has sparked sharp criticism from public health experts.
King Charles and Queen Camilla expressed deep shock and sadness after a car plowed into crowds celebrating Liverpool FC’s Premier League victory.
SpaceX is preparing to launch its ninth uncrewed test flight of Starship — the most powerful rocket ever built — with liftoff expected during a one-hour window.
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