At the intersection of political ambition and institutional independence, a senior Trump economic advisor has publicly urged Federal Reserve Chair Jerome Powell to step aside, framing his continued leadership as an anomaly in the long arc of central banking tradition. The call comes even as internal watchdogs and federal prosecutors have each declined to find wrongdoing in the Fed's controversial headquarters renovation, which ran nearly a billion dollars over budget. What remains unresolved is not a legal question but a political one — who should guide the nation's monetary policy as a new ad
Trump Aide Calls for Powell's Exit From Federal Reserve
Time for Powell to move on, Hassett says of the Fed chair's tenure
Mark
So Hassett is saying Powell should leave. What's actually driving this?
Mimi
The renovation overrun is part of it—$1 billion over budget is real money and real optics. But it's also about control. A new administration wants its own Fed chair.
Luke
But the watchdog found no misconduct. And DOJ won't investigate. So what's the actual case against Powell?
Mimi
That's the thing—there isn't a legal case. It's political. Hassett is saying the tenure itself is the problem, that it's gone on too long.
Mark
How long has Powell been chair?
Mimi
Since 2018. Trump appointed him first, then Biden reappointed him.
Luke
So the "unprecedented" tenure claim—is that actually true? Have other Fed chairs served as long?
Mimi
That's worth checking. But the point Hassett is making is more about what he wants to happen next than what's actually unusual.
Mark
And if Powell does leave, what changes?
Mimi
Monetary policy direction, interest rates, how the Fed regulates banks. A lot hinges on who replaces him.
Luke
Right now, though, Powell is still in the job. The watchdog cleared him. DOJ won't touch it. So this is pressure, not a done deal.
Mark
Pressure from where exactly?
Mimi
From Trump's economic team. Publicly. Which is unusual in itself—you don't often hear this kind of direct call for a Fed chair to resign.
Luke
And that matters because the Fed is supposed to be independent from political pressure. So the fact that it's happening publicly is itself part of the story.
El Pulso
- The Trump administration is openly pressuring Jerome Powell to resign, with senior advisor Kevin Hassett declaring his tenure 'unusual' and urging him to move on — a rare public challenge to the Fed's independence.
- A $1 billion budget overrun on the Federal Reserve's headquarters renovation has fueled scrutiny and given critics a concrete grievance to attach to Powell's leadership.
- The Fed's own inspector general reviewed the renovation and found no misconduct, and the DOJ confirmed it will not reopen any criminal investigation — legally clearing Powell but leaving the political pressure intact.
- The administration's campaign against Powell signals a broader ambition to reshape monetary policy direction, with interest rates, inflation strategy, and financial regulation all potentially in play if leadership changes.
- Powell remains in his chair for now, but the convergence of public pressure and political messaging suggests his tenure is entering a period of sustained and deliberate turbulence.
At the intersection of political ambition and institutional independence, a senior Trump economic advisor has publicly urged Federal Reserve Chair Jerome Powell to step aside, framing his continued leadership as an anomaly in the long arc of central banking tradition. The call comes even as internal watchdogs and federal prosecutors have each declined to find wrongdoing in the Fed's controversial headquarters renovation, which ran nearly a billion dollars over budget. What remains unresolved is not a legal question but a political one — who should guide the nation's monetary policy as a new administration seeks to leave its imprint on the economy's most powerful independent institution.
Kevin Hassett, a senior economic advisor to the Trump administration, has publicly called on Federal Reserve Chair Jerome Powell to step down, arguing that the length of his tenure has become unusual by historical standards. Powell has led the Fed since 2018, first appointed by Trump and later reappointed by Biden — a continuity that Hassett now characterizes as reason enough for a transition.
The push for Powell's departure arrives alongside scrutiny of the Federal Reserve's headquarters renovation, a project that ballooned roughly $1 billion over its original budget. Critics, including the Cato Institute, pointed to the overrun as evidence of institutional dysfunction. However, the Fed's internal watchdog conducted a review and found no evidence of misconduct or illegal activity in how the project was managed.
The Department of Justice added its own resolution to the matter, with a spokesperson confirming that no criminal investigation into Powell or the renovation would be reopened. Legally and administratively, the controversy appears closed — but politically, it remains very much alive.
The administration's willingness to publicly pressure the head of an institution traditionally shielded from political interference reflects deeper tensions over who should steer monetary policy. A change in Fed leadership could carry real consequences for interest rates, inflation management, and financial regulation. For now, Powell holds his position, but the signals from the Trump economic team suggest the pressure is unlikely to ease.
Kevin Hassett, a senior economic advisor to the Trump administration, has called for Jerome Powell to step down as chair of the Federal Reserve, arguing that the central banker's extended tenure in the role has become unusual and that it is time for him to leave.
Hassett's public push for Powell's departure comes as the Federal Reserve faces scrutiny over its spending practices. The central bank's headquarters renovation project ran roughly $1 billion over budget, a significant overrun that drew attention from lawmakers and watchdog groups concerned about fiscal discipline at the institution. The Cato Institute highlighted the cost overrun as symptomatic of what it characterized as a bureaucracy problem within the Fed's operations.
A review by the Federal Reserve's internal watchdog examined the costly renovation and found no evidence of misconduct or illegal activity in how the project was managed. The inspector general's findings suggested that while the budget had ballooned substantially, the spending did not cross into criminal territory or violate established rules. This conclusion effectively closed one avenue of potential accountability for the project's expense.
The Department of Justice has also weighed in on the matter. A DOJ spokesperson, identified as Blanche, confirmed that the department will not reopen a criminal investigation into Powell or the renovation spending. This decision removes the possibility of federal prosecutors pursuing charges related to the Federal Reserve chair or the project's management, at least for now.
Hassett's call for Powell to move on reflects broader tensions between the Trump administration and the Federal Reserve's leadership. The characterization of Powell's tenure as unprecedented suggests that Hassett views the length of his service as the central bank's chair as extending beyond what is typical or appropriate. Powell has served as Fed chair since 2018, initially appointed by President Trump before being reappointed by President Biden.
The timing of Hassett's remarks, combined with the resolution of the renovation controversy and the DOJ's decision not to pursue criminal charges, suggests a shifting political landscape around Federal Reserve leadership. While the watchdog found no wrongdoing and prosecutors declined to investigate further, the public pressure from the Trump administration's economic team indicates that questions about Powell's future remain unresolved in political terms, even if they have been settled in legal and administrative ones.
The question of who leads the Federal Reserve carries significant weight for monetary policy direction, interest rates, and the broader economy. A change in leadership could signal a shift in how the central bank approaches inflation, employment, and financial regulation. For now, Powell remains in his position, but the administration's public calls for his departure suggest that his tenure may face continued political pressure in the months ahead.
Citas Notables
Hassett characterized Powell's continued leadership as unusual and argued it is time for him to move on from the Federal Reserve— Kevin Hassett, Trump economic advisor
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