WASHINGTON — The White House is publicly demanding that Jerome Powell leave the Federal Reserve for good — even though the watchdog report that sparked the latest attack cleared the bank’s leadership of any criminal wrongdoing.
National Economic Council Director Kevin Hassett said Sunday, Oct. 4, on Fox News’ “Sunday Morning Futures” that Powell should give up his seat on the Fed’s Board of Governors, per Barron’s and Fox Business.
“I think that it’s time for him to move on and to respect the independence of the Fed,” Hassett said, calling Powell’s continued tenure “completely unprecedented.” He reached for a corporate analogy: “when there’s a corporation that gets a new CEO. The old CEO doesn’t sit in the office next to him, right?”
The comments follow a Sept. 30 report from the Fed’s Inspector General on the central bank’s $2.4 billion headquarters renovation. The report found no evidence of criminal wrongdoing or administrative misconduct, but cited management shortcomings that helped costs nearly double from the original estimate, according to TradingView and Bloomberg Law.
President Donald Trump responded by saying Powell “should be forced to resign from the Board.” Attorney General Todd Blanche said Friday the Justice Department would not reopen a criminal investigation based on the IG’s findings, though prosecutors could act if a separate audit uncovers criminal conduct.
The pressure comes at a delicate moment for the Fed. Kevin Warsh succeeded Powell as Fed chair in May after Senate confirmation, per Fox Business — but Powell remains a Fed governor with a vote on the rate-setting Federal Open Market Committee, an arrangement former chairs have typically avoided. Powell has said threats of investigations contributed to his decision to stay, according to TradingView, citing Bloomberg.
Critics of the White House campaign call it an assault on the central bank’s independence. Supporters say the renovation’s ballooning costs alone prove accountability is overdue. With the Fed’s September meeting minutes dropping this week and markets already jittery — stock futures flat, the 10-year Treasury at 5.28%, and gold near record highs — the standoff is about to get a very public audience.
More from VIRA Broadcasting: virabroadcasting.com · Substack (free daily edition) · Rumble · VIRA Daily Brief podcast · socials. © VIRA Broadcasting LLC — Los Angeles, CA. All rights reserved. Contact: [email protected] · [email protected] · (424) 344-3130. #VIRABroadcasting