Hassett says White House probing Fed renovation costs, authority to fire Powell [View all]

Source: Reuters

U.S. President Donald Trump has the authority to fire Federal Reserve Chair Jerome Powell for cause if evidence supports that, White House economic adviser Kevin Hassett said on Sunday, adding that the Fed "has a lot to answer for" on renovation cost overruns at its Washington headquarters.

Hassett told ABC's "This Week" program that any decision by Trump to try to fire Powell over what the Trump administration calls a $700 million cost overrun "is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed."

Vought, the White House budget director, last week slammed Powell over an "ostentatious overhaul" of the Fed's buildings and answers to a series of questions about the $2.5 billion project. In a posting on X, he compared the project to France's Palace of Versailles, with rooftop gardens, water features and "premium marble."

Hassett's comments confirm that the Trump administration is actively exploring the renovation costs and Powell's testimony about the project as a possible avenue to try to fire the Fed chief well before his term as chair ends in May 2026.

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Read more: https://www.reuters.com/world/us/hassett-says-white-house-probing-fed-renovation-costs-authority-fire-powell-2025-07-13/