Trump Advisor Urges Powell to Step Down from Federal Reserve

National Economic Council Director Kevin Hassett argued that it is time for Jerome Powell to step down from the Federal Reserve Board, citing the importance of preserving the central bank's independence. Appearing on 'Sunday Morning Futures,' Hassett described Powell's continued presence on the board after his chairmanship ended as 'completely unprecedented,' drawing a comparison to a former CEO lingering after a leadership transition.

Hassett suggested that Powell's extended tenure has contributed to a 'partisan divide' at the Fed, urging him to 'move on' to restore the institution's traditional independence. The White House official emphasized that Powell's departure would allow the Fed to return to its past nonpartisan role, which he believes is crucial for economic success.

The tension between Powell and President Donald Trump has been escalating, with Trump criticizing the Fed's interest rate decisions and even launching personal attacks. The dispute began over monetary policy but has since broadened into a larger confrontation. Trump has been pressuring Powell to resign, as his departure would open up a seat that the president could fill.

Powell was previously investigated by the Department of Justice for cost overruns related to the Fed's headquarters renovation, but no charges were filed. Fox Business reached out to Powell for comment but did not receive an immediate response.