Powell Defends Fed’s Pandemic Actions Amid Trump Attacks

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell defended the central bank’s actions during the COVID-19 pandemic in a speech at Princeton University on Sunday. Powell highlighted the importance of government and universities amid ongoing criticism from President Donald Trump and other political figures.

Powell spoke at a baccalaureate service ahead of the university’s commencement, marking the 50th anniversary of his own graduation. He addressed the decision to lower the key interest rate to nearly zero and launch an extensive asset-purchase program, citing the urgency of the pandemic’s economic impact.

“With little warning, economies around the world came to a hard stop,” Powell said. “The possibility of a long, severe global depression was staring us in the face. Everyone turned to the government and the Federal Reserve as a key first responder.”

He also praised government employees for their dedication during the crisis, stating, “Career civil servants at the Fed who are veterans of previous crises stepped forward and said, ‘We got this.'” Powell’s remarks come in light of Trump’s ongoing attacks, including recent comments labeling him a “fool” for not cutting rates further.

Powell has chosen not to respond directly to the criticisms from Trump, who has pressured the Fed to take more aggressive actions despite concerns about inflation.

In his speech, Powell defended American universities, which have faced scrutiny and funding cuts from the Trump administration. “Our great universities are the envy of the world and a crucial national asset,” he emphasized. “I urge you to take none of this for granted.”

Former Fed governor Kevin Warsh has also criticized the central bank, claiming it contributed to inflation rising to its highest level in decades. He is viewed as a potential candidate to replace Powell as Fed chair.

Despite the criticisms, Powell concluded by acknowledging the Fed’s efforts to prevent economic collapse, saying, “Through the joint efforts of many, we avoided the worst outcomes. It is hard to imagine the pressure people face at a time like that.”