Federal Reserve chair Jay Powell recently delivered a commencement address at Princeton University, using the chance to champion American universities as vital to the nation’s success. His remarks came at a time when the Trump administration has been escalating its attacks on institutions of higher education.

A Crucial National Asset

Mr. powell emphasized the importance of American universities in his speech, stating:

We lead the world in so many ways, including in scientific innovation and economic dynamism. Our great universities are the envy of the world and a crucial national asset.
Jay Powell, Federal Reserve Chair

His praise for these institutions stands in stark contrast to the administration’s recent actions.

Trump administration’s Actions Against Universities

• Harvard University: The trump administration recently barred Harvard University from enrolling international students, citing concerns over perceived left-wing indoctrination and antisemitism. This action, which placed the future of over 6,500 international students in limbo, was temporarily blocked by a U.S. district court judge.
• Visa revocations: The administration has revoked student visas and demanded that colleges provide facts about students who have participated in protests.
• Funding Cuts: The administration has cut billions in funding for higher educational institutions in the U.S., prompting European countries, such as France, to offer academic positions to leading scholars currently based in the U.S.

A Call to Action

Mr. Powell urged Princeton graduates to protect democracy and not take it for granted. He stated:

When you look back in 50 years, you will want to know that you have done whatever it takes to preserve and strengthen our democracy, and bring us ever closer to the Founders’ timeless ideals.
Jay Powell, Federal Reserve Chair

He also encouraged the class of 2025 to take risks, consider public service, and guard their integrity.

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. At the end of the day, your integrity is all you have.
Jay powell, Federal Reserve Chair

Powell’s relationship with the Trump Administration

mr. Powell, appointed by President Trump during his first term, has faced criticism from the president for not cutting interest rates quickly enough. President Trump has labeled him Mr Too Late and a major loser after the Fed held interest rates steady between 4.25% and 4.5% this year.

Mr. Powell and other Fed officials have stated that they cannot lower interest rates until it is indeed clear that the president’s global trade war will not trigger persistent U.S. inflation.

kevin Hassett, former head of President Trump’s National Economic Council, had signaled that the administration would continue to study ways to fire Mr. Powell before his term ended. However, President Trump later stated he had no intention of firing the Fed chair.

Mr. powell intends to serve his full term and believes that firing him over differences of opinion on monetary policy is not permitted under the law.

A Supreme Court opinion indicated that the justices believed the White House did not have the right to interfere with the Fed’s independence in setting monetary policy by firing members of the central bank’s rate-setting committee.