“Sometimes, if you are not failing, it is a sign that you are not challenging yourself enough.”Jerome Powell, Chair of the United States Federal Reserve
Jerome Powell, the ‘President of the World Economy’ and Chair of the United States Federal Reserve (Fed), stood at the podium for his alma mater Princeton University’s graduation ceremony.
Powell, who usually moved markets with complex economic indicators and interest rate policies, offered life advice to 50 years of juniors as a life senior on the 25th.
According to the speech released by the Federal Reserve on the 27th (local time), Powell shared his youth experiences on the themes of ‘courageous challenges’ and ‘initiative’ in front of thousands of graduates.
He emphasized, “Most of the most important developments in my life came from moments when I showed a bit of initiative,” noting that the courage to choose uncertainty over ordinary choices made him who he is.
After graduating from Princeton, Powell started his career as a lawyer. However, he always wanted to pursue new paths instead of joining a law firm.
He recalled his time at the investment bank Dillon Read, saying, “The moment I mustered the courage to ask a senior in a very high position, ‘Can we talk for a moment?’ was life-changing.”
That senior was Nicholas Brady, who was then the president of Dillon Read and later became the U.S. Secretary of the Treasury. The conversation that followed led to Powell’s opportunity to serve as Deputy Minister of the Treasury during the George W. Bush administration.
He candidly admitted that during his time at Princeton, he thought economics was “boring and useless.”
The person who disliked economics is now the Chair of the Federal Reserve, holding the helm of the global economy.
Powell encouraged the juniors, stating, “This unpredictability is the essence of life,” and added, “Failure is just a part of the process toward success, not something to be afraid of.”
As the current Chair of the Federal Reserve, he clearly demonstrated responsibility and conviction. His determination was particularly noticeable in the section explaining how quickly and efficiently the Federal Reserve responded at the beginning of the pandemic.
Powell stated, “(During the pandemic) the global economy came to a sudden halt without warning, and a long and severe global recession loomed before us,” adding, “Everyone was watching how the Federal Reserve would respond first.”
The Federal Reserve, equivalent to the central bank of the United States, pursues the goals of price stability and maximum employment through monetary policy such as setting interest rates and quantitative easing. During the pandemic, the Federal Reserve lowered interest rates to virtually zero (0) and launched large-scale asset purchases.
Powell described this as “a decisive action to prevent an economic collapse.”
This can be read as an indirect rebuttal to the recent repeated criticisms of the Federal Reserve by President Donald Trump. Recently, President Trump stated that interest rates should be lowered further, calling Powell “an idiot who knows nothing” and “the enemy of America,” putting strong pressure on him.
The administration often wants interest rate cuts to spur economic growth. However, the central bank must maintain its independence for long-term economic stability.
Powell did not directly mention President Trump’s name during the speech. However, experts analyzed that he clearly expressed his intent to uphold principles against the pressure from the administration.
Powell urged graduates to take on their roles as responsible members of society beyond economic issues.
He urged, “The great universities of America are a source of envy for the world and important national assets,” and stated, “Do everything necessary to protect and strengthen democracy.”
He also expressed that “the world needs much more from you than personal achievements and successes” and requested, “Please contribute your time to public service to help create a better world.”
This speech received significant attention in the U.S. as it carried a message directly from the current highest-ranking financial authority.
The Wall Street Journal (WSJ) stated, “An exceptionally personal and human speech that intricately weaves together a wide range of topics including economy, politics, democracy, and life experiences.”
The New York Times (NYT) likewise analyzed, “It conveyed the message of the head of finance to maintain calm amidst uncertainty and political conflict in a tranquil tone.”