Key Points
- White House adviser Kevin Hassett downplayed the criminal investigation into Fed Chair Jerome Powell.
- The Trump administration is probing cost overruns on a renovation project at the Fed’s headquarters.
- Powell claims the investigation is a pretext to pressure him into cutting interest rates.
- Hassett, a candidate to replace Powell, said he expects to find “nothing to see here.”
White House adviser Kevin Hassett tried to cool down the controversy over a federal criminal investigation into Federal Reserve Chair Jerome Powell on Friday, saying he expects there will be “nothing to see here.” The Trump administration has launched a probe into Powell over cost overruns on a massive renovation project at the Fed’s headquarters.
Powell, who revealed the investigation himself on Sunday, has denied any wrongdoing. He claims the probe is just a pretext to pressure him into cutting interest rates, something President Trump has been demanding for months.
Hassett, a leading candidate to replace Powell when his term ends in May, told Fox Business Network that, while he wishes the Fed had been more transparent about the renovation costs, he believes Powell is a “good man.” “I expect that the cost overruns are related to things like asbestos, as he says,” Hassett said.
The investigation has drawn a lot of criticism, with many people, including members of Trump’s own Republican party, accusing the administration of politicizing the central bank. The Fed’s independence from political pressure is seen as a cornerstone of the U.S. financial system, and this probe is viewed by many as a direct attack on that independence.
Hassett, however, tried to frame the investigation as a “simple request for information.” “I’m sure the information will be forthcoming shortly, and then things will move forward,” he said.
For now, the financial world is watching and waiting to see how this unprecedented situation plays out. The future of the Fed’s leadership and its ability to act independently are both hanging in the balance.
