Kevin Hassett, director of the National Economic Council, said he is looking into whether the White House has the authority to fire Federal Reserve Chairman Jerome Powell. President Donald Trump says he doesn’t want to fire Powell, but Hassett’s comments suggest that the best administration officials are still considering the possibilities. The Trump administration has zeroed in the Fed’s $2.5 billion renovation project as a possible “cause” to eliminate Powell.
Kevin Hassett, director of the National Economic Council, said on Sunday that it is “under investigation” whether the Trump administration has the authority to fire Federal Reserve Chairman Jerome Powell.
“But if there’s a cause, he’ll do,” Hassett said on ABC News “This Week” about Trump’s authority to eliminate Powell before his term comes into office next spring.
President Donald Trump says he doesn’t want to fire Powell, but Hassett’s comments suggest that the White House is still considering the possibilities — and is potentially moving.
President Trump’s top director has recently escalated criticism of Powell, particularly by targeting the $2.5 billion renovation project of the Federal Reserve.
Taxpayers are not paying for renovations. The Fed is self-funded through profits through securities held by the institution and fees charged to banks.
Russell Vert, director of management and budget, said last week that Powell “mismanaged the Fed” and called for an investigation into an ongoing project to renovate the Fed’s headquarters.
Vought’s remarks suggest that the Trump administration may have laid the foundations to find the cause to eliminate Powell, a frequent target of the Trump administration, before his term rises.
In an escalation, Vought sent Powell a list of questions last week, requesting responses about the renovation project.
Hassett on Sunday said the answer to Vought’s question might determine how the administration will proceed.
“Whether the president decides to push that path down will depend heavily on the answers that Russ vertebrates to the questions he sends to the Fed,” he said.
The Federal Reserve quietly rebutted many of Vought’s questions last week on an updated webpage that addresses several questions on the Fed’s website.
“No new VIP dining rooms have been built as part of the project,” the website’s FAQS page directly addresses one of Vought’s questions.
The webpage was posted on Friday, the same day Vought told CNBC that it had been guaranteed a survey to manage Powell’s renovation project.
Trump recently suggested on Friday that he didn’t want to fire Powell, but he said in recent weeks he’s been keeping several people in mind about the post when Powell’s term expires in May next year.
Hassett is reportedly a top candidate to replace Powell.
The other candidate is former Fed governor Kevin Warsh, according to the Wall Street Journal.
Warsh appeared on Fox News’ Morning and Morning with Maria on Sunday, appearing to be casting herself subtly at the position.
He called the renovation project “outrageous” and said “The Fed has lost its way.”
“It’s lost, it’s lost in supervision, it’s lost in monetary policy, and all this big money in a big, flashy building is just another sign,” he said.
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