White House Targets Fed Governor Jerome Powell Amid Tension

On July 2, NEC Director Kevin Hassett called Powell’s continued board service “extremely anomalous” and “very, very unusual,” saying it blocks a Trump-appointed seat.

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

President Donald Trump has repeatedly urged the Fed to cut rates, yet the central bank left its benchmark interest rate unchanged at its latest meeting. Since the start of Trump’s second term, only Kevin Warsh—now Fed Chair—has been appointed by the administration. Powell’s term runs until January 2028; he said he will leave “when I think it’s appropriate,” citing a politically motivated investigation of the Fed’s headquarters project. Warsh, speaking in Portugal, said inflation stays above the 2 % target but expectations and risks have declined.

White House’s Hassett criticises Powell for staying on at Fed

Kevin Hassett (NEC Director), Jerome Powell (Fed Governor, term ends Jan 2028), Kevin Warsh (Fed Chair, sole Trump appointee), Donald Trump (President), Federal Reserve Board of Governors.

White House’s Hassett criticises Powell for staying on at Fed

Powell said he will stay on the Board until at least 2028 and that any departure will be timed according to his own judgment. Warsh, at the Portugal conference, reaffirmed the Fed’s 2 % inflation goal and said expectations have eased. Hassett expressed concern over Powell’s motives, pledged to monitor the situation, affirmed the Fed “has great leadership” and should “do its job,” and said the administration will keep a close eye on Powell’s moves.

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

Hassett called Powell’s board membership “unorthodox,” arguing it blocks a Trump-appointed seat. He claimed a “majority of people over at the Fed” may vote to “get Trump,” warned that raising rates would be a “macro-economic policy error,” citing a supply-driven boom and AI-driven productivity as deflationary. The Fed stresses data-driven decisions and internal coordination, a challenge Warsh described as “incredibly difficult.”

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

The dispute raises concerns about Fed independence and the potential for political pressure to shape monetary policy, which could affect future rate decisions, board appointments, and market expectations before the late-July meeting.

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

Hassett’s claim that a majority of Fed members vote to “get Trump” lacks supporting evidence. No formal investigation of Powell has been announced, and the timing of any departure is unclear. The Fed has not publicly responded to the White House’s personnel criticism.

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

• “It's extremely anomalous that Jay Powell is still there,” — Kevin Hassett, NEC Director

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

• “A former chair staying on the board is very, very unusual.” — Kevin Hassett, NEC Director

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

• “I worry about what his motivations are,” — Kevin Hassett, NEC Director

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

• “Rest assured, if something goes wrong, it won't be Kevin Warsh's fault,” — Kevin Hassett, NEC Director

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

• “when I think it's appropriate,” — Jerome Powell, Fed Governor

White House Economic Adviser Hassett Blasts Powell for Overstaying, Questions Motives and Pressures Fed Policy — BigGo Finance

The Fed’s late-July meeting will test whether rate guidance shifts under political pressure, and observers expect further White House commentary and a possible new board appointment before Powell’s 2028 term ends.

White House’s Hassett criticises Powell for staying on at Fed