Fed Chair Powell to Ivy Leaguers: ’Defend Democracy’—While Central Banks Print Unchecked

Jerome Powell pivots from monetary policy to moralizing in a speech dripping with irony.

The Federal Reserve chair—whose institution controls the money printer—lectured Princeton and Harvard students on safeguarding democratic institutions. No mention of how quantitative easing erodes trust in those very systems.

Bonus jab: Nothing protects democracy like debasing its currency at 2% inflation targets while real wages stagnate.

Trump targets Ivy League as Powell urges students to act

The administration has accused schools of left-wing indoctrination and failing to address antisemitism, marking a clear change in policy direction toward elite institutions. With billions in federal funding already cut from American higher education, some top scholars are now being offered academic roles overseas.

France and other European countries are extending invitations to US-based researchers who are losing faith in the domestic academic environment.

Powell told the graduates to stay sharp and act deliberately. “Take none of this for granted,” he said. He urged students to protect their integrity, consider public service, and be ready to take risks. 

“Fifty years from now, you will want to be able to look in the mirror and know that you did what you thought was right, in every part of your life,” he added. “At the end of the day, your integrity is all you have.”

That same integrity has been tested during Powell’s own time at the Fed. Though TRUMP appointed him during his first term, the president has since gone after him publicly, calling him “Mr Too Late” and “a major loser” because the Fed hasn’t dropped interest rates. 

The central bank has kept rates steady between 4.25% and 4.5% this year, with Powell and his colleagues saying they won’t move until they’re sure Trump’s global trade actions won’t bring more inflation.

Supreme Court backs Fed as Trump’s team considers removal

Last month, Kevin Hassett, who heads Trump’s National Economic Council, said the WHITE House was still reviewing whether it could fire Powell before his term ends in May. Trump later claimed he had “no intention” of firing him, but the possibility remained hanging over the Fed. 

Powell, on the other hand, has made it clear he plans to finish his term. He also said that being removed just for having a different view on interest rates WOULD be illegal.

A ruling from the US Supreme Court this week supported that stance. The Court’s opinion signaled that the president doesn’t have the right to interfere with the Fed’s independence or remove members of the Federal Open Market Committee over policy differences. That decision further locked in Powell’s authority to lead without political interference.

The broader political context for Powell’s speech wasn’t subtle. With the Trump administration aggressively targeting elite academic institutions, calling out student activism, cutting off federal money, and driving top scholars abroad, the message was urgent. 

The combination of domestic pressure and political volatility has left universities and the Fed defending their roles in a country now defined by conflict over power, loyalty, and control.

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