Story perspectives

Trump Calls Powell ‘Moron,’ DOJ Investigates; Warsh Set to Chair

6/1/2026

Center

Trump slams Powell

President Donald Trump called Fed Chair Jerome Powell a “moron” and the Justice Department opened a criminal investigation into him.
Jerome Powell will stay on Reserve Board as Kevin Warsh prepares to become chair, with inflation above the 2 % target.
March 2026 PCE index was 10.4 % higher than if 2 % target had been met since January 2020.
Fed officials deem shrinking balance sheet unnecessary, warning it could raise rates amid Hormuz crisis.

Left

Powell Receives Award

Jerome Powell received the John F. Kennedy Profile in Courage Award for defending Federal Reserve independence.
U.S. President Donald Trump called Powell a “moron” as the Justice Department opened a criminal investigation into his congressional testimony.
Powell kept his Board seat through 2028, warning that politicizing policy could erode public trust.
Federal judge halted administration’s bid to remove Governor Lisa Cook while Supreme Court reviews case.

History

Historical Context

In July 1979 President Jimmy Carter nominated Paul Volcker, who took the Federal Reserve chair on August 6 1979 and soon raised the federal-funds rate to a 20 % peak in June 1981, driving inflation from a 14.8 % March 1980 high down below 3 % by 1983. The fierce political backlash then mirrors today’s Trump-Powell feud and the Justice Department’s probe, reviving concerns over Fed independence.

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Trump slams Powell

President Donald Trump called Fed Chair Jerome Powell a “moron” and the Justice Department opened a criminal investigation into him.
Jerome Powell will stay on Reserve Board as Kevin Warsh prepares to become chair, with inflation above the 2 % target.
March 2026 PCE index was 10.4 % higher than if 2 % target had been met since January 2020.
Fed officials deem shrinking balance sheet unnecessary, warning it could raise rates amid Hormuz crisis.

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