Kevin Hassett Urges Jerome Powell Resignation Over Fed Headquarters Renovation Failures
President Donald Trump’s economic adviser Kevin Hassett has publicly called on former Federal Reserve Chair Jerome Powell to resign from the central bank’s Board of Governors. The demand follows an internal watchdog report that flagged significant management failures regarding renovations at the Federal Reserve’s Washington, D.C., office.
Powell left his role as Fed chair in May following the appointment of Chairman Kevin Warsh, but he maintains a critical vote on monetary policy as one of 12 voting members of the Federal Open Market Committee (FOMC). Speaking on Fox News’ Sunday Morning Futures, Hassett stated that it is time for Powell to move on and respect the independence of the institution, a sentiment echoed by President Trump.
FOMC Voting Power and the Push for a Board Vacancy
The resignation push centers on the immediate composition of U.S. monetary policy leadership. While Powell no longer leads the central bank, his seat on the seven-member Board of Governors carries a vote on interest rate decisions. If Powell steps down before his term as governor expires, President Trump can appoint a replacement subject to Senate confirmation, altering the policy balance within the FOMC.
The Federal Reserve raised its target interest rate by 25 basis points to a range of 3.75% to 4% on September 16, with all policymakers supporting the increase to combat lingering inflation above the 2% target. Analysts note that a new Trump-appointed governor could shift future rate expectations, though the direct impact depends entirely on the nominee’s economic stance.
Institutional Demand Drives Bitcoin Past $87,000
Digital asset markets have monitored the regulatory and political friction closely as Bitcoin rebounded past $87,000 following poor performance around the September Fed meeting. Strong corporate and institutional demand for U.S. spot Bitcoin ETFs helped drive the recovery, counteracting tighter macroeconomic conditions.
High Treasury yields continue to present a challenge for cryptocurrency valuations by offering alternative yields to cautious investors. While a dovish shift from the Federal Reserve typically benefits Bitcoin through improved market liquidity, sources emphasize that Powell’s departure alone does not guarantee lower interest rate expectations.
Markets Await Federal Reserve Meetings in October
Markets are now looking ahead to the Federal Reserve’s scheduled meetings on October 27 and 28, where rate expectations will take center stage. Weaker September payroll data has already prompted markets to reevaluate the probability of an immediate October rate hike, though policymakers have left the door open for further increases later in the year.
A departure by Powell would introduce new variables to the FOMC voting mix, but financial analysts suggest the broader trajectory of Bitcoin and Treasury yields will depend more heavily on broader macroeconomic data and incoming leadership stances than on an individual board exit.