Trump Adviser Calls for Powell to Step Down from Federal Reserve

President Donald Trump’s former economic adviser, Kevin Hassett, has called for Jerome Powell to step down from the Federal Reserve’s Board of Governors following a review of the central bank’s headquarters renovation. Powell, who stepped down as Fed chair in May but retains a voting seat on interest rates, has faced scrutiny over the renovation’s management. Hassett argued on Fox News’ Sunday Morning Futures that Powell should resign to uphold the Fed’s independence.

Powell’s potential departure would open a seat for a Trump nominee, subject to Senate approval. The Fed’s next policy meeting on October 27-28 could see another rate hike, though expectations have weakened following a softer September employment report. Fed officials, including Vice Chair Philip Jefferson and New York Fed President John Williams, have suggested a pause may be warranted to assess economic conditions further.

Bitcoin’s outlook remains tied to the Fed’s rate decisions. A replacement for Powell could influence market expectations, particularly if the new nominee favors looser monetary policy. However, the renovation review found no criminal wrongdoing, and the Justice Department has declined to reopen its investigation into Powell.

Meanwhile, the Fed raised interest rates to a range of 3.75% to 4% in September, with all members, including Powell and his successor, Kevin Warsh, supporting the move. Warsh has announced stronger oversight of the renovation project, including external audits to ensure better cost controls.