Trump Renews Criticism of ‘Moron’ Jerome Powell as Justice Department Pursues Criminal Probe of Fed Chairman

President Trump is stepping up his verbal attacks on the chairman of the Federal Reserve, Jerome Powell, despite legal setbacks and congressional resistance to an effort to indict Mr. Powell concerning cost overruns on a massive renovation project.“Nobody sues this guy,” Mr. Trump said Thursday during a Cabinet meeting at the White House where he described Mr. Powell as a “moron.”“And then when Jeanine Pirro, working with [Attorney General] Pam [Bondi] and others, has the courage to sue to find out what happened to maybe $4 billion at a building that may never be occupied by [Fed chairman nominee] Kevin Warsh, you may never get there.”The United States attorney for the District of Columbia, Ms. Pirro, opened a criminal probe into Mr. Powell and the Fed in November after Mr. Trump pushed for an investigation into cost overruns on a $2.5 billion renovation of the Fed headquarters.One of the allegations is that Mr. Powell lied to Congress when questioned about the overruns on the project, which was initially estimated at $1.9 billion. Mr. Powell released a video in January to disclose that the Justice Department had served the Federal Reserve with grand jury subpoenas, threatening a criminal indictment related to his testimony before the Senate Banking Committee last June.Mr. Powell called the action “unprecedented” and said it should be viewed “in the broader context of the administration’s threats and ongoing pressure.” Mr. Powell claims he is facing potential criminal charges only because the board has not heeded the president’s call to rapidly lower interest rates.The chief judge of the United States District Court for D.C., James Boasberg, agreed with Mr. Powell and dismissed the subpoenas this month, but Ms. Pirro has filed a request that he reconsider. The central bank filed a response — unsealed on Thursday — asking Judge Boasberg to reject the request.The Fed argues there are no extraordinary circumstances to justify a reconsideration of the subpoenas. “The USAO neither points to an intervening change in law nor offers new evidence,” the brief argues.Ms. Pirro’s office had claimed that Judge Boasberg’s initial motion to quash the subpoenas used “an incorrect legal standard” and overlooked facts in the case.It’s not clear when Judge Boasberg will rule on the motion to reconsider the subpoenas but time is becoming an issue with the investigation.Mr. Powell’s term as Fed chairman ends on May 15. Mr. Trump has nominated Kevin Warsh, a former Fed governor, to replace him butSenator Thom Tillis has vowed to hold up the confirmation of any new board member until the criminal investigation into Mr. Powell is finished.Mr. Powell says he has “no intention” of leaving the Fed as long as the probe continues. His term as a Fed governor lasts until January 2028 but outgoing Fed chairmen have traditionally resigned from the board when their terms as chairman have ended.

Trump Renews Criticism of ‘Moron’ Jerome Powell as Justice Department Pursues Criminal Probe of Fed Chairman

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