Jerome Powell Defends Federal Reserve’s Pandemic Response Amid Trump Criticism
Fed Chair speaks out on COVID-19 policies, interest rates, and public service at Princeton University
Federal Reserve Chair Jerome Powell delivered a powerful speech at Princeton University, defending the Federal Reserve’s aggressive pandemic response to the COVID-19 crisis. His remarks came as a direct answer to growing attacks from former President Donald Trump and critics like Kevin Warsh, who have questioned the Fed’s decisions on interest rates and economic policy.
Jerome Powell Reaffirms Federal Reserve’s COVID-19 Strategy
At the prestigious Princeton baccalaureate service—50 years after he graduated—Jerome Powell proudly defended how the Federal Reserve acted as a "first responder" during the COVID-19 outbreak. With global economies grinding to a halt, Powell described the urgency of the moment.
“A prolonged and severe global depression loomed directly ahead of us,” Powell said.
To stabilize financial markets, the Federal Reserve slashed interest rates to near zero and launched a massive bond-buying program—purchasing trillions of dollars in U.S. Treasuries and mortgage-backed securities. These actions were designed to keep long-term interest rates low and credit flowing to households and businesses.
Powell credited the success of these programs to the dedication of career civil servants at the Federal Reserve.
“Veterans of past crises stepped forward and said, ‘We got this,’” he noted. “Their efforts saved our economy.”
Trump Ramps Up Attacks on Powell and the Fed
Despite the stabilizing efforts, Jerome Powell and the Federal Reserve are under fire from Donald Trump, who has publicly slammed the Fed’s decision to hold interest rates steady throughout 2025. Trump argues there is “no inflation” and insists the Fed should be cutting rates to boost economic growth.
In recent weeks, Trump labeled Powell a “fool” and coined the nickname “Too Late Powell,” blaming him for moving too slowly on monetary policy.
Powell has chosen not to respond directly to Trump’s personal attacks—a move that has earned quiet praise from Republican lawmakers who view him as maintaining the independence of the Federal Reserve.
Praise for American Universities and Public Service
Alongside defending monetary policy, Jerome Powell also used his speech to highlight the importance of American universities and public servants—both frequent targets of Trump-era criticisms.
“Our leading universities are globally respected and serve as a cornerstone of national strength,” Powell told graduates. “I urge you to take none of this for granted.”
He emphasized that institutions like Princeton—and the civil servants who support them—are essential to innovation, research, and the resilience of democracy.
Kevin Warsh Joins the Chorus of Fed Critics
The criticism isn’t just coming from Trump. Kevin Warsh, a former Federal Reserve governor and likely contender to replace Powell when his term ends in 2026, has also taken aim at the Fed’s handling of inflation.
Speaking at the IMF’s spring meeting, Warsh warned that the Fed's actions could lead to ballooning government debt and overreach.
“Each time the Fed jumps into action, the more it expands its size and scope,” Warsh said. “More debt is accumulated, more institutional lines are crossed.”
While Warsh accused the Fed of fueling inflation by acting too slowly in 2021, Jerome Powell admitted some delays but firmly defended the broader pandemic response.
“Through the joint efforts of many, we avoided the worst outcomes,” Powell stated. “The civil servants involved deserve our deepest gratitude.”
Conclusion: Federal Reserve Actions Prevented Economic Collapse
Jerome Powell’s speech served as a bold reminder of the Federal Reserve’s role during times of crisis. It was both a personal reflection and a public defense of the Fed’s historic COVID-19 response, from emergency interest rate cuts to preserving financial stability.
At a time of political tension, economic uncertainty, and rising inflation, Powell stood by the Federal Reserve and the dedicated civil servants who helped steer the nation through the storm.
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