Hassett Calls for Powell to Resign Amid Fed Headquarters Renovation Dispute

Kevin Hassett, the White House National Economic Council director and top economic adviser to former President Donald Trump, has called for Jerome Powell to resign from the Federal Reserve Board of Governors. Hassett made the remarks on Fox News' Sunday Morning Futures, stating, "I think it’s time for him to go and respect the independence of the Federal Reserve."

The demand follows an internal review of the Fed’s headquarters renovation, which revealed management problems after costs soared to $2.4 billion, nearly double the original estimate. The Fed’s inspector general found no evidence of criminal or administrative misconduct but highlighted issues in project management. Trump also echoed the call for Powell’s resignation via social media.

The Justice Department has ruled out reopening a criminal investigation into Powell based on the inspector general’s report. However, the Fed plans to appoint an independent auditor to reassess the renovation costs. Deputy Attorney General Todd Blanche noted that a new audit could prompt further investigation if it uncovers evidence of criminal conduct.

Separately, tensions persist between the Trump administration and the Fed over interest-rate policy. Fed Chair Kevin Warsh recently raised the benchmark interest rate by 0.25 percentage points to combat inflation. Hassett disagreed with the move but acknowledged it was made for the right reasons.