White House economic adviser Kevin Hassett called on former Federal Reserve chair Jerome Powell to leave the central bank's board on Sunday, describing Powell's decision to stay on as a governor as "completely unprecedented."
"I think that it's time for him to move on and to respect the independence of the Fed," Hassett, the director of the National Economic Council, said on Fox News' "Sunday Morning Futures." He argued that Powell's continued presence has deepened a partisan divide at the central bank.
"It's completely unprecedented that somebody would have their chairmanship end and not resign right away," Hassett said. "It's kind of like when there's a corporation that gets a new CEO. The old CEO doesn't sit in the office next to him, right?"
Renovation report reignites pressure
The comments followed a September 30 report from the Fed's inspector general on the central bank's $2.4 billion headquarters renovation. The watchdog found no evidence of criminal wrongdoing or administrative misconduct, but identified management shortcomings that contributed to the project's cost nearly doubling from its original estimate.
President Donald Trump responded by saying Powell "should be forced to resign from the Board." The Justice Department said on Friday it would not reopen a criminal investigation based on the inspector general's findings, though prosecutors could act if a separate audit uncovers evidence of criminal conduct.
An unusual arrangement
Kevin Warsh succeeded Powell as Fed chair in May, but Powell has remained on the Board of Governors, where he retains a vote on monetary policy. Former chairs typically leave the board when their leadership term ends; Powell has said that threats of investigations into him and the Fed contributed to his decision to stay.
The renewed pressure adds another political dimension to concerns about Federal Reserve independence — an issue closely watched by bond, currency and equity markets as the central bank confronts persistent inflation and rising borrowing costs.
Sources:
Fox Business: Trump economic advisor says 'it's time' for Powell to leave Fed, calls extended tenure 'unprecedented'
Barron's: Hassett Says Fed's Powell Should Move On
"I think that it's time for him to move on and to respect the independence of the Fed," Hassett, the director of the National Economic Council, said on Fox News' "Sunday Morning Futures." He argued that Powell's continued presence has deepened a partisan divide at the central bank.
"It's completely unprecedented that somebody would have their chairmanship end and not resign right away," Hassett said. "It's kind of like when there's a corporation that gets a new CEO. The old CEO doesn't sit in the office next to him, right?"
Renovation report reignites pressure
The comments followed a September 30 report from the Fed's inspector general on the central bank's $2.4 billion headquarters renovation. The watchdog found no evidence of criminal wrongdoing or administrative misconduct, but identified management shortcomings that contributed to the project's cost nearly doubling from its original estimate.
President Donald Trump responded by saying Powell "should be forced to resign from the Board." The Justice Department said on Friday it would not reopen a criminal investigation based on the inspector general's findings, though prosecutors could act if a separate audit uncovers evidence of criminal conduct.
An unusual arrangement
Kevin Warsh succeeded Powell as Fed chair in May, but Powell has remained on the Board of Governors, where he retains a vote on monetary policy. Former chairs typically leave the board when their leadership term ends; Powell has said that threats of investigations into him and the Fed contributed to his decision to stay.
The renewed pressure adds another political dimension to concerns about Federal Reserve independence — an issue closely watched by bond, currency and equity markets as the central bank confronts persistent inflation and rising borrowing costs.
Sources:
Fox Business: Trump economic advisor says 'it's time' for Powell to leave Fed, calls extended tenure 'unprecedented'
Barron's: Hassett Says Fed's Powell Should Move On
