Intel stock extends gains after report of possible U.S. government stake
Investing.com-- The White House is looking into whether President Donald Trump has the authority to fire Federal Reserve Chair Jerome Powell, top economic advisor Kevin Hassett told ABC News on Sunday.
Hassett said the White House was also scrutinizing the Fed’s recent renovation project, which had drawn ire from several lawmakers over a reported $700 million budget overrun to $2.5 billion.
Hassett told ABC’s “This Week” program that any decision by Trump to fire Powell over a budget overrun will “depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed.”
“(Firing Powell) is a thing that is being looked into, but certainly if there’s cause he does,” Hassett said.
His comments come after White House Budget Director Vought last week slammed Powell over an “ostentatious overhaul” of the Fed’s buildings, and over Powell’s answers to questions over the $2.5 billion project.
Trump has also repeatedly lashed out against Powell over the Fed Chair’s reluctance to cut interest rates further. Powell has cited uncertainty over the inflationary impact of Trump’s trade policies as a key reason for keeping the Fed on hold.
Recent reports suggested that Trump may name Powell’s successor much earlier than expected, in a bid to undermine the Fed Chair’s authority. Powell’s term ends in May 2026.
Hassett is seen as a “serious contender” for Powell’s role, recent reports showed, and was seen discussing the role with Trump in June.