Trump Advisor Urges Powell to Step Down from Fed Board

Kevin Hassett, President Donald Trump’s chief economic adviser, has called on former Federal Reserve Chair Jerome Powell to step down from the Fed’s board of governors. Hassett’s remarks follow an internal report that highlighted management failures in the $2.4 billion renovation of the Fed’s headquarters, though it found no evidence of criminal wrongdoing.

In an interview on Fox News’ Sunday Morning Futures, Hassett stated, I think that it’s time for him to move on and to respect the independence of the Fed. Powell, who left his position as Fed chair in May but remained on the board, has broken with the precedent of previous Fed chairs who left the central bank after their leadership terms ended.

Trump echoed Hassett’s sentiments, posting on social media that Powell should be forced to resign from the Board. However, US Attorney General Todd Blanche clarified that the Justice Department would not reopen a criminal investigation based on the current findings. He did note that an independent audit of the building costs is forthcoming, and any evidence of criminal misconduct would prompt further investigation.

Powell has argued that threats of criminal investigations into him and the Federal Reserve left him with no choice but to stay on the board. Meanwhile, Trump has criticized current Fed Chair Kevin Warsh for raising interest rates, despite Warsh’s unanimous vote to do so last month amid persistent inflation. Hassett acknowledged the decision but emphasized respect for Warsh’s autonomy.