POWELL VS TRUMP
NATIONALIST VS BUSINESSMAN (President)
POWELL'S SPEECH AT PRINCETON UNIVERSITY

On May 25 at Princeton University, Jerome Powell, gave a speech.

Below are some of his key messages:

1️⃣ Defense of his policies during the pandemic:
Powell emphasized that actions such as lowering interest rates to near zero during the pandemic and conducting massive asset purchases were necessary to prevent a global depression during that time.
He referred to this swift response as a savior of the U.S. economy.

2️⃣ Response to political criticism from Trump and Kevin Warsh:
Powell has faced criticism from Trump, who called him “Too Late Powell” for keeping interest rates between 4.25% and 4.5% despite low inflation.
He was also criticized by Kevin Warsh, a potential replacement for Powell, who accused him of letting the national debt balloon.

But Powell stood firm, defending the decisions he believed saved millions of jobs.

3️⃣ Support for civil servants and universities:
Powell praised the role of U.S. government workers and universities, who have faced criticism and funding cuts from the Trump administration. He highlighted the importance of integrity and public service and encouraged graduates to protect democracy and moral values.

👉 Powell stated clearly that he would not resign if asked to, stressing the legal protection of his position and the importance of the Federal Reserve’s independence from political pressure.

This is my personal opinion:
To me, this felt like Powell’s defense against Trump’s attacks.
On one hand, Powell is more conservative, and I sensed a very cautious and nationalist tone in his delivery.

Meanwhile, Trump is more aggressive, pushing an agenda he claims will “Make America Great Again,” though perhaps not entirely truthfully—there may be other interests hidden behind that slogan.

Anyway, in my opinion, as long as Powell remains in office, we might only see one rate cut this year—if any at all. But we’ll see. The story is still developing, and we’ll analyze it further down the line.