White House Economic Advisor Kevin Hassett Calls for Jerome Powell to Step Down from Federal Reserve Board

National Economic Council Director Kevin Hassett has publicly called for Federal Reserve Board Chairman Jerome Powell to step down from his position, arguing that the former chair’s continued presence on the board is unprecedented and undermines the central bank’s independence.

Hassett, speaking on “Sunday Morning Futures,” argued that it is time for Powell to “move on” and allow the Federal Reserve to move past the current partisan divisions. He emphasized that an independent central bank is vital for economic stability and success.

Federal Reserve Board Chairman Jerome Powell holds a news conference on June 18, 2025, in Washington, D.C. (Win McNamee/Getty Images)

“I think that it’s time for him to move on and to respect the independence of the Fed,” Hassett told Larry Kudlow. “End this sort of partisan divide that’s very visible at the Fed, and let’s move on to the way the Fed used to be in the past.”

Hassett described Powell’s extended tenure on the board as “completely unprecedented,” comparing the situation to a corporate transition where a former CEO does not remain in the office alongside the new leadership.

White House National Economic Council Director Kevin Hassett. (Al Drago/Bloomberg)

“It’s completely unprecedented that somebody would have their chairmanship end and not resign right away. It’s kind of like when there’s a corporation that gets a new CEO. The old CEO doesn’t sit in the office next to him, right?” Hassett stated.

“I think the best way for him to preserve the independence of the Fed is to trust the people that we put there who really, really believe in the independence of the Fed,” he added.

The tension between President Donald Trump and Powell has escalated from disagreements over interest rates into a broader confrontation. Trump has intensified his pressure campaign in recent months, publicly criticizing the Fed’s benchmark interest rate decisions and, at times, resorting to personal attacks.

Powell was previously investigated by the Department of Justice for cost overruns associated with multibillion-dollar renovation projects at the Federal Reserve’s Washington, D.C., headquarters, but no charges were brought. U.S. Attorney General Todd Blanche confirmed that the Justice Department would not reopen a criminal investigation into Powell.

FOX Business reached out to Powell for comment but did not immediately hear back.

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