Kevin Hassett, Donald Trump’s top economic adviser, has said he expects there is “nothing to see here” as the US Department of Justice pursues a criminal investigation into Federal Reserve chair Jerome Powell. The probe centres on whether Powell misled Congress about the cost of renovations to the Fed’s Washington headquarters.
Speaking on Fox Business Network, Hassett, who is considered a leading candidate to replace Powell when his term expires in May, said he believed Powell had told the truth about the renovation. “Jay’s a good man,” Hassett said. “I expect that there’s nothing to see here, that the cost overruns were related to things like asbestos, as he says.” However, he added that he wished the Fed had been “more transparent” in its congressional testimony.
The investigation has sparked widespread criticism, with every living former Fed chair condemning it as an attack on the central bank’s independence. Central banks worldwide issued a rare joint statement expressing “full solidarity” with Powell. The Trump administration has faced accusations of targeting Powell after the Fed resisted the president’s demands for drastic interest rate cuts.
Hassett, who chairs the National Economic Council, said he would take the Fed chair role with a commitment to “independence and transparency”. Later, Trump praised Hassett’s television appearance and expressed reluctance to let him leave his current post, saying, “I actually want to keep you where you are.”
