National Economic Council Director Kevin Hassett speaks to reporters at the White House in Washington, D.C., U.S., April 14, 2025.
Kevin Lamarque | Reuters
National Economic Council Director Kevin Hassett said Sunday that whether the Trump administration has the authority to fire Federal Reserve Chair Jerome Powell is “being looked into.”
“But certainly, if there’s cause, he does,” Hassett said on ABC News’ “This Week” of Trump’s authority to remove Powell before his term is up next spring.
President Donald Trump has said that he does not want to fire Powell, but Hassett’s comments suggest the White House is still considering — and potentially moving towards — the possibility.
Top Trump administration officials have escalated their criticisms of Powell in recent days, in particular by targeting the Federal Reserve’s $2.5 billion renovation project, which Hassett said has gone over budget by $700 million.
Taxpayers are not paying for the renovations. The Fed is self-funded through interest it makes on securities held by the institution and through fees charged banks.
Office of Management and Budget Director Russell Vought last week accused Powell of having “grossly mismanaged the Fed,” and said he would seek an investigation into the ongoing project to renovate the Fed’s headquarters.
Vought’s remarks suggested that the Trump administration may be laying the groundwork to find a cause to remove Powell — a frequent target of the Trump administration — before his term is up.
In an escalation, Vought sent a list of questions to Powell last week demanding answers about the renovation project.
Hassett on Sunday said the answers to Vought’s questions may determine how the administration proceeds.
“I think that whether the president decides to push down that road or not is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed,” he said.
The Federal Reserve quietly rebutted many of Vought’s questions last week with an updated webpage on the Fed website that addresses some of the questions.
“No new VIP dining rooms are being constructed as part of the project,” the FAQs page on the website states, directly responding to one of Vought’s questions.
While Trump suggested as recently as Friday that he does not want to fire Powell, he has said in recent weeks that he has a few people in mind for the post for when Powell’s term expires next May.
Hassett is reportedly a top contender to replace Powell.
One other possible contender is former Fed Governor Kevin Warsh, according to The Wall Street Journal.
Warsh was on Fox News’ “Mornings with Maria” on Sunday, appearing to subtly pitch himself for the position.
He called the renovation project “outrageous” and said that “the Fed has lost its way.”
“It’s lost, lost its way in supervision, it’s lost its way in monetary policy, and all this big money on big, fancy buildings is just another indication,” he said.