U.S. Federal Reserve Chair Jerome Powell speaks during a press conference following a two-day meeting of the Federal Open Market Committee on interest rate policy in Washington, D.C., U.S., May 7, 2025.
Kevin Lamarque | Reuters
Federal Reserve Chairman Jerome Powell shared one of the biggest career mistakes with Princeton graduates and said taking risks and initiatives is the key to getting ahead.
In a commencement address to Princeton’s Class of 2025 on Sunday, Powell described one of the key traits he said was behind him ultimately becoming a member of the Federal Reserve Board.
“As you strive in coming years to reach your full potential you’ll need to take risks, and yes to make mistakes. Everyone, and I mean everyone, makes mistakes — take it from an expert — but the bigger mistake is to avoid taking risks. If you’re not failing from time to time you’re not asking enough of yourself,” Powell said.
Powell became a member of the Fed’s board of governors in 2012. He was appointed chairman in 2018 by U.S. President Donald Trump, and reappointed in 2022 by former President Joe Biden.
He explained that nobody is ever ready to take on more senior positions and leadership roles.
“Go for it. Throw yourself into the deep end of the pool, believe in yourself, take risks,” Powell said. “When you fall down — and you will fall down — get up and repeat the cycle.”
‘Initiative is the rocket fuel of life’
The central bank leader emphasized that much of his success can be pinned down to small moments when he decided to take the initiative.
“A little bit of initiative at the right time can make all the difference. The initiative is the rocket fuel of life,” Powell said. “Now, I’m no entrepreneur, I didn’t start a major tech company. But as I look back, many of the most important developments in my life trace back to a few occasions where I showed just a little bit of initiative.”
Powell shared an anecdote of when he worked at a firm led by former U.S. Senator Nicholas F. Brady, and was keen to introduce himself.
He decided to take the initiative and climb the stairs to Brady’s office and ask for a quick meeting. It was “very brief,” but the encounter paid off. Two months later, Brady asked Powell to work with him on a project.
A year later, Brady became Treasury Secretary and requested that Powell serve as assistant secretary of the Treasury.
“That enormously challenging role whet my appetite for further public service and ultimately proved to be a gateway for my appointment to the Federal Reserve Board. So if I hadn’t forced myself to walk up those stairs and take what I saw as a risky and potentially awkward step I wouldn’t be standing here today,” Powell said.
“I can think of long-term friendships and one marriage — my own — that turn on a moment’s initiative. On occasions like that we risk failure, awkwardness, embarrassment and rejection but that’s how we create the career opportunities, the great friendships, and the love that make life worth living. So the combination of luck, the courage to make mistakes, and a little initiative can lead to much success.”