White House Economic Advisor Kevin Hassett confirmed on Friday that President Donald Trump and his team are actively considering whether Jerome Powell, the chairman of the Federal Reserve, should be removed from his position.
“The president and his team will continue to study this issue,” Hassett told reporters at the White House in response to questions, as reported by AFP.
Background:
Hassett’s comments come after a public disagreement between Trump and Powell. Trump accused the Fed Chairman of engaging in politics by not lowering interest rates and suggested he had the power to remove Powell from office “very quickly.”
Legal and Political Implications:
Hassett seemed to distance himself from his own 2021 book, The Drift: Stopping America’s Slide to Socialism, where he argued that dismissing Powell during Trump’s first term would have damaged the Fed’s reputation as an objective and independent monetary authority.
“At that time, the market was a completely different place, and we were referring to the legal analysis available back then,” Hassett explained. “If new legal analysis comes forward, then we will have to reconsider our response.”
Current Legal Landscape:
It remains unclear what specific new legal analysis Hassett was referring to. However, a case where Trump exceeded his authority by dismissing two Democratic members from federal labor boards is currently under Supreme Court review. This case is being closely watched as a potential precedent for whether Trump could successfully remove Powell.
Powell, for his part, has stated that the law does not permit his removal, emphasizing that he does not plan to leave his post and intends to serve until the end of his term in May 2026.
