Trump economic advisor says 'it's time' for Powell to leave Fed, calls extended tenure 'unprecedented'

Live updates

1. 1h ago

   Trump Adviser Hassett Urges Powell to Leave Fed Board

   President Donald Trump's top economic adviser, Kevin Hassett, publicly stated that former Federal Reserve Chair Jerome Powell should leave the central bank's board. Hassett argued that Powell's extended tenure as a former chair remaining on the board is unprecedented and undermines central bank independence. The remarks follow an internal report from the Fed's watchdog that cited management failures and a massive cost overrun during the renovation of the Fed's headquarters. Meanwhile, the Department of Justice announced it will not reopen a criminal probe into Powell regarding the costly project.

   Why it matters

   Jerome Powell's ongoing presence on the Federal Reserve board has drawn political scrutiny following a watchdog investigation into the expensive headquarters renovation project often called the Palace of Versailles. While the watchdog found management failures and severe cost overruns, it uncovered no illegal activity or misconduct. The Justice Department subsequently confirmed it would not reopen any criminal probe into Powell, clearing him of legal wrongdoing.

   What is confirmed

   • National Economic Council Director Kevin Hassett said it is time for Jerome Powell to move on from the Federal Reserve board.
   • Hassett argued that Powell's continued presence as a former Fed chair on the board is unprecedented.
   • The Department of Justice will not reopen a criminal probe of Powell, according to Blanche.
   • A watchdog report found no misconduct or illegal activity in costly renovations of the Fed headquarters.

   Still unconfirmed

   • Jerome Powell is guilty of being a lousy Fed Chair despite being cleared of wrongdoing in the renovation project.

   What to watch next

   • Any announcement from Jerome Powell regarding whether he intends to step down from the Federal Reserve board.
   • Further statements from the White House regarding potential actions or pressure concerning the Fed leadership.
   Sources used for this update (12)

   1. The New York Times — Fed’s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations
   2. Politico — DOJ will not reopen criminal probe of Powell, Blanche says
   3. Yahoo Finance — Attorney General says he won't reopen investigation of former Fed Chair Jerome Powell
   4. Cato Institute — A $1 Billion Overrun and a Promotion: The Fed’s Bureaucracy Problem
   5. New York Post — Jerome Powell off the hook for the ‘Palace of Versailles’ renovation — but he’s still guilty of being a lousy Fed Chair
   6. foxbusiness.com — Trump economic advisor says 'it's time' for Powell to leave Fed, calls extended tenure 'unprecedented'
   7. Bloomberg.com — Trump Aide Hassett Says Powell Should ‘Move On’ From Fed Board
   8. finance.yahoo.com — Trump Aide Hassett Says Powell Should ‘Move On’ From Fed Board
   9. www.yahoo.com — Trump adviser Hassett urges Powell to leave Fed board after ...
   10. www.foxbusiness.com — Kevin Hassett says Powell should 'move on' to preserve Fed ...
   11. thenyledger.com — Trump economic advisor says 'it's time' for Powell to leave ...
   12. au.finance.yahoo.com — Trump adviser Hassett urges Powell to leave Fed board after ...
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