Trump adviser Hassett urges Powell to leave Fed board after renovation report

Kevin Hassett, Donald Trump’s top economic adviser, has urged Federal Reserve Chair Jerome Powell to step down from the central bank’s board following an internal report that criticized the management of the Fed’s headquarters renovation. The renovation, costing $2.4 billion, saw management deficiencies that nearly doubled the project’s original budget.

However, the report found no evidence of criminal wrongdoing or administrative misconduct. The Justice Department, under Attorney General Todd Blanche, has stated it will not reopen a criminal investigation of Powell based on the report's findings. Blanche indicated that the department might investigate further if an independent auditor uncovers any criminal misconduct during the review of the building costs.

Powell has been a member of the Fed’s board since leaving his role as chair in May, deviating from the norm where Fed chairs typically resign when their leadership terms conclude. Trump has been pushing for the Fed to lower borrowing costs, a demand that recently led to a unanimous decision by policymakers, including Powell’s successor, to raise interest rates by a quarter percentage point amidst high inflation.

Despite differing with the decision, Hassett expressed respect for the Fed Chair’s motivation. Trump also noted that if he were in Powell’s position, he would have voted against the rate hike.