Kevin Hassett, Director of the White House National Economic Council, has criticized former Federal Reserve Chair Jerome Powell for his continued presence at the U.S. central bank, stating it is obstructing the Trump administration's ability to appoint new governors.

Hassett made these remarks during an interview on Thursday.

An Unusual Situation

"It is an extremely unusual situation that Powell did not choose to step down," Hassett said. "It is a very abnormal thing for a former chair to continue sitting in that position."

He offered this response when asked if there were specific members within the Federal Reserve that concerned him. The previous day, on Fox Business, he had stated, "There are a majority of people inside the Fed who may not be voting out of patriotism, but because they want to target Trump."

Escalating Tensions

The friction between the White House and the central bank has intensified as Fed policymakers have not enacted the significant interest rate cuts repeatedly demanded by President Trump, instead opting to hold the benchmark rate steady last month.

Currently, Trump has only successfully appointed one member to the Fed Board since the start of his second term: the new Chair, Warsh. Powell's term as a Fed governor lasts until January 2028, and he has previously indicated he does not intend to leave his post.

In April of this year, Powell suggested he would depart "when I think it's appropriate," citing concerns that an investigation into the Fed's headquarters construction project was politically motivated.

Questioning Motives

"I am concerned about what his motivations are," Hassett stated, having also said on Wednesday, "We have to watch this very closely." However, on Thursday he added, "Ultimately, this is a problem that Warsh is going to solve."

When questioned about the necessity of an investigation into Powell, Hassett responded, "The Fed needs to do its job, they have great leadership, and we hope everything works out in the end."