Powell Pushes Back on Trump Criticism, Lauds Universities, Fed Workers/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Fed Chair Jerome Powell defended the Federal Reserve’s pandemic-era decisions during a Princeton speech. Amid rising attacks from Donald Trump and allies, Powell praised civil servants and U.S. universities. He warned against taking government institutions and public service for granted.
Powell at Princeton Quick Looks
- What: Federal Reserve Chair Jerome Powell gave a baccalaureate speech at Princeton
- When: May 25, 2025, ahead of Tuesday’s commencement
- Where: Princeton University, Powell’s alma mater
- Why It Matters: Speech followed escalating attacks from Trump and Fed critics over inflation, interest rates, and university funding
- Key Topics: Fed’s COVID-19 response, civil service, role of U.S. universities, political pressure on the central bank
Deep Look: Powell Rebukes Trump’s Fed Criticism, Backs Public Institutions at Princeton
Speaking to graduating students at Princeton University on Sunday, Federal Reserve Chair Jerome Powell used the moment to reaffirm the integrity of America’s institutions — defending the Fed’s COVID-19 economic rescue efforts while addressing the growing political attacks leveled by former President Donald Trump.
In a heartfelt speech that strayed far beyond economics, Powell celebrated the role of public servants, research universities, and the central bank he leads — all recent targets of partisan firepower.
Defending the Fed’s Pandemic Playbook
Powell strongly defended the Fed’s 2020 response to the pandemic, when the global economy halted almost overnight. To stabilize markets, the Fed slashed interest rates to near zero and purchased trillions in government-backed securities.
“The possibility of a long, severe, global depression was staring us in the face,” Powell said. “Everyone turned to the government, and to the Federal Reserve in particular.”
He praised the swift action by career Fed employees, saying they stepped up during an unprecedented moment of economic panic.
Responding Without Responding
While Powell didn’t name Trump directly, his remarks came after months of escalating criticism from the former president, who has slammed Powell as a “fool” and “Too Late Powell” for not cutting rates further in 2025.
Trump, who has declared inflation to be a “non-issue,” wants rates slashed to boost the economy before the 2026 midterms. Powell has resisted, keeping the benchmark rate steady following multiple cuts last year, citing still-present inflationary risks.
Republican allies of Trump, including former Fed governor Kevin Warsh — a leading contender to replace Powell in 2026 — have also accused the Fed of overreach and blame its policies for enabling excessive government spending.
Powell, however, used his platform to reaffirm the Fed’s independence and necessity in moments of crisis.
“Through the joint efforts of many, we avoided the worst outcomes,” he said. “Their collective efforts saved our economy.”
Standing Up for U.S. Universities
The Fed chair also came to the defense of American higher education, which has faced sweeping cuts and ideological scrutiny from the Trump administration. Federal funding to Ivy League institutions, including Princeton, has been slashed, and DEI (Diversity, Equity, Inclusion) programs are under attack.
“Our great universities are the envy of the world and a crucial national asset,” Powell said. “Look around you. I urge you to take none of this for granted.”
His message drew enthusiastic applause from faculty, students, and alumni.
Trump’s Broader Agenda and Fed’s Future
Trump’s public feud with Powell dates back to his first term. Now, with Powell’s chairmanship set to end in May 2026, Trump and his allies are sharpening their case for a more compliant Fed under a future administration.
Warsh, speaking at the IMF last month, warned that the Fed has grown too powerful and has enabled reckless borrowing.
“More institutional lines are crossed and the Fed is compelled to act even more aggressively the next time,” Warsh said.
Powell acknowledged past missteps, particularly around inflation in 2021, but reiterated the unique circumstances of the pandemic.
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