After Calling Powell a ‘Moron,’ Trump Moves to Replace Fed Chair With Kevin Warsh
Donald Trump has nominated former Federal Reserve governor Kevin Warsh to serve as the next chair of the Federal Reserve, escalating a long-running and increasingly hostile clash with current Fed Chair Jerome Powell over interest rates and the central bank’s independence.
The announcement comes after months of public attacks by Trump, who has repeatedly blamed Powell for refusing to cut interest rates as aggressively as the president demands. Trump has accused Powell of mismanaging the economy and slowing growth by keeping borrowing costs higher for longer.
In comments to reporters and on social media, Trump has labeled Powell “incompetent,” “crooked,” and a “numbskull,” while openly stating that he wants him removed from office. On the eve of announcing Warsh as his nominee, Trump intensified his rhetoric, calling Powell a “moron” in a post on Truth Social.
The confrontation has since taken a more serious turn. The Trump administration has threatened Powell with potential criminal charges related to statements he made to Congress about a $2.5 billion renovation project at the Federal Reserve’s headquarters in Washington.
Powell disclosed that the Justice Department is reviewing the matter but has firmly denied any wrongdoing. He has characterized the investigation as unprecedented and politically motivated, saying it is being used as leverage to pressure him into complying with Trump’s demands for immediate interest rate cuts.
According to Powell, the administration’s actions amount to an effort to undermine the Fed’s independence and punish him for resisting political interference in monetary policy.
Warsh, a former Fed governor and longtime critic of certain central bank policies, has been seen by Trump allies as more willing to align with the president’s economic agenda. His nomination is expected to set off a contentious confirmation process and reignite debate over the role of politics in shaping U.S. monetary policy.
The move marks a dramatic escalation in Trump’s effort to reshape the Federal Reserve — and signals that the battle over interest rates and central bank autonomy is far from over.
Screenshot via Truth Social –
