Hassett Criticizes Powell's Decision to Stay, Saying It Blocks New Fed Nominees
Miles Bennett
White House economic adviser Kevin Hassett publicly attacked former Chair Jerome Powell for keeping his Fed governor seat, calling it "highly unusual" — a move that directly blocks Trump from filling the board with new picks, escalating the White House–Fed power struggle.
What exactly did Hassett say?
Hassett called Powell's refusal to step down as governor "highly unusual" and said a former chair staying on is "very abnormal."
A day earlier he went further: some Fed officials vote "not out of patriotism but to target Trump."
This means → The White House is no longer hinting. It is openly framing internal Fed dissent as political opposition.
Why won't Powell leave?
Powell's governor term runs until January 2028. He has said plainly he will not resign early.
In April he added that concerns over a politically motivated probe into Fed headquarters construction mean he will leave "when he sees fit."
In plain terms = Powell's position is clear — you can strip my title, but you can't force me out of the seat.
What is really at stake?
Trump has repeatedly demanded steep rate cuts. The Fed held rates steady last month, making the rift public.
Since his second term began, Trump has placed only one governor — new Chair Waller.
This means → Powell sitting on his seat directly shrinks the White House's room to reshape the board.
What comes next?
Hassett handed the problem to the current chair: "Ultimately, this is something Waller will resolve."
Asked whether Powell should face an investigation, he sidestepped: "We hope everything works out in the end."
This reflects a White House strategy of pressure without direct action — tossing the hot potato to Waller and testing how the new chair walks the tightrope between the White House and Fed independence.
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