National Economic Council Director Kevin Hassett said Monday that he expects Federal Reserve Chair Jerome Powell to leave the central bank’s board of governors if he is “happy” with a forthcoming internal report on the Fed’s renovations, which have been repeatedly criticized by President Trump.
Powell, whose term as chair expires this month, said recently that he plans to stay on as a governor until Federal Reserve Inspector General Michael Horowitz concludes his probe on the project.
But Hassett told host Joe Kernen on CNBC’s “Squawk Box” that he “would guess that the off-ramp for [Powell] would be if the inspector general’s report comes out soon and he’s happy with the results.”
If that occurs, Hassett added, “I would expect that he would leave.”
Horowitz’s probe began in late April, after U. S. Attorney for the District of Columbia Jeanine Pirro dropped her criminal investigation into Powell’s handling of the $2.5 million renovation project.
Powell, the chair of the Fed since 2018, criticized Pirro’s probe as politically driven by Trump and said he would not leave the central bank until it concluded. While the outgoing chair’s term ends on Friday, his separate term as a Fed board member runs through January 2028.
After his final meeting with the Federal Open Market Committee as chair, Powell reiterated his intention to stay amid Horowitz’s probe.
“I have said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that,” he told reporters. “I’m encouraged by recent developments, and I’m watching the remaining steps in this process carefully.”
“My decisions on these matters will continue to be guided entirely by what I believe is in the best interest of the institution and the people we serve,” he added.
Meanwhile, the Senate has not yet confirmed Kevin Warsh, Trump’s choice to succeed Powell as chair. The Senate Banking Committee last month voted to advance Warsh’s nomination in a partisan 13-11 vote.
A vote is scheduled for Monday evening on limiting debate on Warsh’s nomination, a procedural hurdle ahead of his confirmation vote.
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