US President Donald Trump may fire Federal Reserve chair Jerome Powell over concerns about the renovation of Fed facilities, according to National Economic Council director Kevin Hassett.
The move comes as the administration has intensified pressure on the Fed, citing cost overruns for its headquarters renovation project. The project, which is currently $2.5 billion over budget, has raised questions about the central bank’s independence and Powell’s future.
Hassett said that the mere threat of firing Powell had caused a sell-off in markets earlier this year, leading to interest rate hikes. Despite Trump’s denial of plans to fire Powell as recently as Friday, Hassett’s comments suggest that the door is now open for such an action.
The administration has sent a letter to Fed officials demanding answers about cost overruns and compliance with the law. If the president decides to push forward, Hassett said it would depend on the responses received from the Fed.
Hassett himself is seen as a leading contender to replace Powell, whose term as Fed chair expires in May. The Federal Reserve has offered details of its expensive renovation project, which the White House is using as grounds for questioning Powell’s independence and control over monetary policy.
The move marks a new front in Trump’s war with Powell, who has resisted pressure to cut interest rates. The White House and allies in Congress appear to be building a case against Powell, using the Fed’s over-budget renovation project as leverage.
Source: https://www.axios.com/2025/07/13/trump-powell-federal-reserve-hassett