Hassett urges Powell to leave Fed board after renovation report

October 4, 2026 at 09:38 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

White House economic adviser Kevin Hassett called on former Federal Reserve Chair Jerome Powell to leave the central bank’s board on Sunday. The call followed a Sept. 30 inspector general report that criticized management of the Fed’s $2.4 billion headquarters renovation. President Donald Trump said Powell “should be forced to resign from the Board.”

Key Facts

Kevin Hassett, director of the National Economic Council, said on Fox News that it is time for Powell to move on and respect the independence of the Fed.
The Fed inspector general’s Sept. 30 report found no evidence of criminal wrongdoing or administrative misconduct related to the renovation.
The renovation project’s cost nearly doubled from its original estimate due to management shortcomings identified by the watchdog.
Attorney General Todd Blanche said Friday that the Justice Department would not reopen a criminal investigation based on the inspector general’s findings.
Powell remains a Fed governor with a vote on monetary policy even though Kevin Warsh succeeded him as chair in May.

The Renovation Report

The Fed inspector general’s Sept. 30 report found no evidence of criminal wrongdoing or administrative misconduct related to the $2.4 billion headquarters renovation. However, the watchdog identified management shortcomings that contributed to the project’s cost nearly doubling from its original estimate. Attorney General Todd Blanche said Friday that the Justice Department would not reopen a criminal investigation based on the inspector general’s findings. Prosecutors could act if a separate audit uncovers evidence of criminal conduct, Blanche added.

Political Pressure on Powell

President Donald Trump responded to the report by saying Powell “should be forced to resign from the Board.” Kevin Hassett, director of the National Economic Council, said on Fox News that it is time for Powell to move on and respect the independence of the Fed. Powell remains a Fed governor even though Kevin Warsh succeeded him as chair in May, meaning Powell continues to have a vote on monetary policy. Powell has said threats of investigations into him and the Fed contributed to his decision to remain.

Market and Policy Context

The renewed pressure on Powell adds another political dimension to concerns about Federal Reserve independence, an issue closely watched by bond, currency and equity markets. The dispute comes after the Fed unanimously raised its benchmark interest rate by a quarter percentage point last month. Hassett said he opposed the increase but defended the central bank’s ability to make the decision independently. Trump has said Warsh should make his own monetary-policy decisions, although he told Time magazine of the latest rate increase: “I probably would have voted against the board if I were him.”