Trump advisor demands Powell step down to restore Fed independence

National Economic Council Director Kevin Hassett called for former Federal Reserve Chair Jerome Powell to step down from his role on the Federal Reserve Board, arguing that Powell's continued presence undermines the central bank's independence. Speaking on Sunday Morning Futures, Hassett described Powell's extended tenure as 'completely unprecedented' and compared it to a former CEO remaining in the office after a new leader takes over.

Hassett suggested that Powell's resignation would help end partisan tensions at the Fed and restore its traditional independence. 'I think that it's time for him to move on and to respect the independence of the Fed,' he told host Larry Kudlow. The economic advisor also criticized the visible partisan divide at the Fed, calling for a return to its past impartiality.

The feud between Powell and President Donald Trump has deepened over time, initially sparked by disagreements over interest rates. Trump has publicly criticized the Fed's policies and, at times, targeted Powell personally. Hassett's comments come as Trump intensifies his pressure campaign against the central bank, seeking to influence its decisions.

Powell's tenure has also been scrutinized over cost overruns in a multibillion-dollar renovation project at the Fed's Washington, D.C., headquarters. Though investigated by the Department of Justice, no charges were brought against him. The White House did not immediately respond to requests for comment on Hassett's remarks.