The White House is currently examining whether President Donald Trump has the legal authority to dismiss Federal Reserve Chair Jerome Powell, according to senior economic advisor Kevin Hassett, who spoke to ABC News on Sunday.
Hassett also confirmed that the administration is reviewing a costly renovation project undertaken by the Federal Reserve, which has come under fire from lawmakers for a reported $700 million budget overrun—pushing the total cost to $2.5 billion.
Appearing on ABC’s This Week, Hassett said any potential move to remove Powell over the renovation will “depend a lot on the answers” to questions recently submitted by White House Budget Director Russ Vought to the Fed.
“The idea of firing Powell is under review, and if there’s legitimate cause, then yes, it’s within consideration,” Hassett said.
This comes in the wake of criticism from Vought, who slammed the renovation as extravagant and questioned Powell’s justification for the $2.5 billion expenditure.
President Trump has frequently criticized Powell for not cutting interest rates more aggressively, blaming the Fed’s cautious stance on rate reductions for slowing the economy. Powell has pointed to the inflationary risks of Trump’s trade policies as a key factor in the Fed’s decision to hold rates steady.
Speaking to reporters over the weekend, Trump reiterated his discontent: “Powell’s been very bad for our country. We should have the lowest interest rates in the world—but we don’t. And yet, he’s spending $2.5 billion to remodel the Fed.”
Some reports have indicated that Trump is considering naming Powell’s replacement earlier than expected, potentially weakening Powell’s influence before his term ends in May 2026.
Hassett is reportedly a leading candidate for the role and was seen discussing the position with Trump last month.
