Hassett Says Positive Inspector General Report Could Lead to Powell Departure
National Economic Council Director Kevin Hassett said Monday he hopes a forthcoming Federal Reserve inspector general report provides an off-ramp for Chairman Jerome Powell to leave the central bank after his term ends. Powell has said he will remain as a board member until an investigation into a building renovation is completed with full transparency.
Washington ExaminerNational Economic Council Director Kevin Hassett expressed hope Monday that a positive Federal Reserve inspector general report would allow Federal Reserve Chairman Jerome Powell to leave the central bank peacefully once his term ends. Powell’s term as chairman ends Friday.
” The investigation centers on Powell’s oversight of the renovation of the Federal Reserve headquarters building in Washington. The Justice Department opened a criminal investigation in early January into whether Powell lied or misrepresented details about the taxpayer-funded, multibillion-dollar project during congressional testimony in June 2025.
Powell maintained his innocence. He suggested the investigation stemmed from disagreements over interest rates, which he said violated the central bank’s independence. The Justice Department dropped its investigation in late April. At the time, U.S. Attorney for the District of Columbia Jeanine Pirro said that Horowitz had been asked to scrutinize the building cost overruns.
Hassett pushed back against Powell’s assertion that the probe violated the Fed’s independence. ” The Senate is expected to confirm Warsh as the next chairman this week.
