Hassett urges former Fed chair Powell to resign, citing unprecedented board stay
National Economic Council Director Kevin Hassett said Jerome Powell should leave the Federal Reserve Board, calling his continued presence after his chairmanship unprecedented.
Kevin Hassett, director of the National Economic Council, told Larry Kudlow that Jerome Powell ought to vacate his seat on the Federal Reserve Board, describing his post-chair tenure as "completely unprecedented." Hassett said the move would help restore the Fed’s independence and end the partisan divide that has become apparent. He compared the scenario to a former CEO staying in the office next to a new one, arguing that such a setup undermines governance.
The tension between Powell and the president has grown from disagreements over interest rates to broader confrontations. Although Powell was previously investigated for cost overruns at the Fed’s Washington, D.C., headquarters, the Justice Department, led by Attorney General Todd Blanche, confirmed no criminal case will be reopened. Hassett’s comments underscore the political pressure on the central bank amid ongoing policy debates.
Why it matters
Powell’s continued board role could affect the Federal Reserve’s perceived independence and influence monetary policy.
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