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Federal Reserve Chair Jerome Powell delivered a strong defense of the central bank's actions during the COVID-19 crisis on Sunday, using a speech at Princeton University to highlight the Fed's role in protecting the US economy during one of its darkest moments.

Speaking to graduating students at his alma mater, Powell addressed growing political attacks, particularly from former President Donald Trump and potential Fed successor Kevin Warsh.

Despite the rising pressure, Powell stood by the Fed's emergency decisions to lower interest rates and buy large amounts of government debt at the height of the pandemic.

"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 to the Federal Reserve in particular as a key first responder."

According to AP News, the Fed slashed interest rates to nearly zero in 2020 and began purchasing trillions of dollars in bonds to keep borrowing costs down.

While those actions helped steady markets, they later drew criticism from both Trump and Warsh, who argue the Fed didn't act fast enough to control inflation as prices began rising in 2021.

Fed Chair Pushes Back on Trump Criticism, Praises Civil Servants

Powell admitted the Fed could have raised rates earlier but stressed that the overall response prevented a much worse outcome. "Through the joint efforts of many, we avoided the worst outcomes," he said. "Their collective efforts saved our economy."

Trump, who appointed Powell in 2018, has recently stepped up personal attacks, calling him a "fool" and "Too Late Powell" for not cutting rates further, Inquirer said. The Fed has kept rates steady this year, citing concerns about renewed inflation.

Powell has avoided direct responses to Trump's insults but indirectly addressed the political pressure, praising career civil servants at the Fed.

"Veterans of previous crises stepped forward and said, 'We got this,'" he noted.

He also used the moment to support US universities, which have come under fire from the Trump administration over research funding and student protests.

"Our great universities are the envy of the world and a crucial national asset," Powell said. "Take none of this for granted."

The Supreme Court recently backed the Fed's independence, ruling that the president cannot remove officials over policy disagreements—giving Powell stronger legal ground to serve out his term through May 2026.

Powell urged young Americans to protect democracy, act with integrity, and consider public service. "At the end of the day," he told the students, "your integrity is all you have."

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