National Economic Council Director Kevin Hassett publicly called for former Federal Reserve Chair Jerome Powell to step down from the Federal Reserve Board, stating that Powell's continued presence after his chairmanship is 'completely unprecedented' and could threaten the central bank's independence [1]. Hassett made these remarks on 'Sunday Morning Futures,' emphasizing that Powell should 'move on' to restore the Fed's traditional independence and reduce visible partisan divides [1].
Hassett likened Powell's situation to a corporation where a new CEO takes over, arguing that the former CEO should not remain in close proximity, and asserted that the best way to preserve the Fed's independence is for Powell to trust those appointed to the board who value its autonomy [1]. Powell's extended tenure has reportedly contributed to tensions between him and President Donald Trump, who would have had the opportunity to fill the seat if Powell resigned. The disagreement began over interest rates and has escalated, with Trump increasing public criticism of the Fed's benchmark rate decisions and resorting to personal attacks [1].
Powell was previously investigated by the Department of Justice for cost overruns related to multibillion-dollar renovation projects at the Fed's Washington, D.C., headquarters, but no charges were brought. U.S. Attorney General Todd Blanche confirmed that the Justice Department would not reopen a criminal investigation into Powell [1]. FOX Business reached out to Powell for comment but did not receive an immediate response [1].
CONCLUSION
Kevin Hassett's call for Jerome Powell to leave the Federal Reserve Board highlights concerns about central bank independence and ongoing tensions with President Trump. While Powell faced scrutiny over renovation project costs, no legal action was taken. The situation may impact perceptions of Fed leadership and its policy direction, but immediate market reactions were not discussed.