Trump Adviser Hassett Calls for Jerome Powell to Resign From Fed Board

National Economic Council Director Kevin Hassett has publicly called for former Federal Reserve Chair Jerome Powell to resign from his seat on the Federal Reserve Board of Governors. The request follows the release of an internal watchdog report detailing management failures in a $2.4 billion headquarters renovation project.

"I think that it’s time for him to move on and to respect the independence of the Fed," said Kevin Hassett, head of the National Economic Council, during an appearance on Fox News' Sunday Morning Futures.

Findings of the Renovation Report

The internal investigation, concluded on September 30, examined the rising costs of the central bank's headquarters renovation. While the report found no evidence of criminal wrongdoing or administrative misconduct by Powell, it identified systemic management deficiencies. These oversights contributed to project costs nearly doubling from original estimates to a final total of $2.4 billion.

Following the release of these findings, U.S. Attorney General Todd Blanche confirmed that the Justice Department would not reopen a criminal investigation into the matter at this time. Blanche noted that the department could take future action if new evidence emerges.

"If they learn anything that rises to any kind of criminal misconduct, you better believe we’re going to investigate that," said Todd Blanche, U.S. Attorney General.

Precedent and Board Membership

Jerome Powell has continued to serve as a member of the Board of Governors since stepping down as Fed Chair in May. His decision to remain on the board departs from historical norms, as Fed chairs traditionally resign their board seats immediately upon the conclusion of their leadership terms. By staying on, Powell maintains a voting role in monetary policy decisions. This position has become a point of friction between the current administration and the central bank's leadership.

What Is at Stake

The call for resignation highlights tension regarding the institutional norms and oversight of the Federal Reserve. As the administration seeks to exert influence over economic leadership, the focus on the renovation project provides a mechanism for questioning the management decisions of long-standing officials. For the Federal Reserve, the situation raises questions about the balance between its structural independence and the accountability expected of its governing members regarding internal fiscal administration.