White House National Economic Council Director Kevin Hassett has criticized former Fed Chair Jerome Powell for remaining at the Federal Reserve, a move he says is hindering the Trump administration's ability to nominate other individuals to the Board.
“It’s highly unusual that Jay Powell didn’t step down,” Hassett said in an interview Thursday. “It is a very abnormal thing for a former chair to still be there.”
He made these remarks when asked if he was concerned about certain officials at the central bank. Hassett told Fox Business on Wednesday that "the majority of the people at the Fed are not necessarily voting out of patriotism, they are voting against Trump."
Federal Reserve policymakers have not enacted the large interest rate cuts repeatedly demanded by President Donald Trump and held the benchmark rate steady last month.
Currently, only one member of the Federal Reserve Board, the new Chair Kevin Warsh, was nominated during Trump's second presidential term. Powell's term as a governor runs until January 2028, and he has indicated he intends to remain in place for now. In April, Powell stated he would step down "when I think it’s appropriate," citing concerns that an investigation into the Fed's headquarters project was politically motivated.
“I worry about what his motives are,” Hassett said. He had stated Wednesday that "we’re going to have to watch that very closely," but on Thursday added: “Ultimately, that’s something that Kevin Warsh is going to have to deal with.”
When asked if an investigation should be launched into Powell, Hassett said, “The Fed needs to do its job, they have great leadership, and we hope it works out.”
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