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President Donald Trump’s chief economic adviser, Kevin Hassett, has urged Jerome Powell to leave the Federal Reserve’s Board of Governors following a watchdog review of its headquarters renovation. Powell still votes on interest rates despite stepping down as chair in May. His departure would open a seat for a Trump nominee.
Kevin Hassett made his comments during Fox News’ Sunday Morning Futures on Oct. 4. He linked his call to questions about the central bank’s handling of the renovation and argued that Powell should step aside.
“I think that it’s time for him to move on and to respect the independence of the Fed,” Hassett said. Trump separately demanded Powell’s resignation after the watchdog released its findings.
Kevin Warsh replaced Powell as Fed chair in May, but Powell retained his seat on the Board of Governors. The Fed lists him among the Federal Open Market Committee’s 12 voting members. Governors vote alongside the New York Fed president and four regional bank presidents who serve rotating terms.
If Powell resigns before his governor term ends in 2028, Trump could nominate a successor, subject to Senate confirmation. A new governor would hold one vote on the committee, leaving rate decisions dependent on the wider group’s assessment of inflation and employment.
The Fed raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4% on Sept. 16. All 12 committee members supported the decision, including Powell and Warsh.
Powell’s exit would not itself lower borrowing costs or add money to financial markets. Any support for Bitcoin would depend on whether a replacement favors easier policy and whether investors adjust their expectations for future rates.
Meanwhile, expectations for another October increase have weakened without a change in the committee’s membership. Fed Vice Chair Philip Jefferson said policymakers may need more time to assess the economy. New York Fed President John Williams also indicated that another increase could be appropriate without requiring immediate action.
A weaker-than-expected September employment report further supported expectations for a pause. Nevertheless, another increase remains possible in December, and upcoming inflation figures could change the outlook before the October meeting.
The Fed’s next policy meeting takes place on Oct. 27–28. Bitcoin’s response will depend partly on the rate decision and officials’ guidance about later moves. Treasury yields remain another factor since government bonds offer investors an alternative source of returns.
The renovation review found management deficiencies, including weaknesses in cost controls, but no evidence of criminal wrongdoing or administrative misconduct. The Justice Department said Friday that the findings did not justify reopening its criminal investigation into Powell.
Attorney General Todd Blanche said authorities could investigate if an independent audit uncovers evidence of criminal conduct. Warsh has announced stronger oversight of the renovation, including help from the General Services Administration and an outside auditor to review project costs.
