Kevin Hassett, director of the White House National Economic Council, revealed on Sunday that the Trump administration is exploring whether President Donald Trump has the authority to fire Federal Reserve Chair Jerome Powell.
Powell has faced repeated criticism from Trump for the Federal Reserve’s reluctance to lower interest rates despite the president’s demands.
In an interview with ABC’s “This Week,” Hassett was asked directly if Trump can remove Powell. He replied, “That’s a thing that’s being looked into. But certainly, if there’s cause, he does.”
However, the U.S. Supreme Court recently hinted it might block any attempt to remove Powell, describing the Federal Reserve as a “uniquely structured, quasi-private entity.”
Meanwhile, the administration seems to be setting the stage for a potential firing by scrutinizing costly renovation work at the Fed’s Washington headquarters. Hassett said the project has exceeded its original budget by $700 million.
Asked if this renovation could be used as grounds to dismiss Powell, Hassett said, “I think that whether the president decides to push down that road or not is going to depend a lot on the answers that Russ Vought sent to the Fed.”
Russ Vought, director of the Office of Management and Budget, recently sent a letter to Powell expressing serious concern over the Fed’s management of the renovation. Vought accused the Fed of ignoring fiscal responsibility while proceeding with an “ostentatious overhaul” of its D.C. headquarters and suggested that an investigation might be warranted.
In response, the Fed updated its website with a dedicated FAQ addressing these concerns, denying claims that the renovation included building new VIP dining rooms.
Despite the White House’s efforts to pressure Powell and influence Fed rate decisions, Hassett emphasized that the administration “100% wants independent monetary policy.” However, he added in a CNBC interview, “It sure looks like they need more congressional oversight on things like the way they build their buildings.”
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Hassett is reportedly among the candidates President Trump is considering to replace Powell, whose term ends in May 2026. Former Fed governor Kevin Warsh is another potential contender, according to The Wall Street Journal.
Trump has consistently blamed Powell for harming the U.S. economy by resisting calls to reduce interest rates.
