Washington, D.C. — National Economic Council Director Kevin Hassett confirmed that the Trump administration is reassessing its authority over Federal Reserve Chair Jerome Powell’s position amid growing scrutiny of Powell’s handling of a $2.5 billion renovation project at the Fed’s headquarters. Hassett emphasized on Sunday that the administration could explore options to remove Powell if warranted, stating, “But certainly, if there’s cause, he does.”

Despite President Donald Trump having no immediate plans to dismiss Powell, the recent escalation in criticism from senior administration officials suggests an increasing discontent with the Fed chair’s management. The focal point of concern has been the renovation project, which has reportedly exceeded its budget by $700 million. Hassett noted that the funds for this undertaking come from the Fed’s self-generated revenue, not taxpayer dollars, as the central bank operates primarily through interest earned on securities and fees from financial institutions.

In an apparent buildup to a potential removal, Office of Management and Budget Director Russell Vought accused Powell of severe mismanagement and indicated an intention to investigate the renovation’s finances. Vought took the extraordinary step of sending Powell a detailed list of inquiries regarding the project, a move interpreted as laying the groundwork for an official complaint against the Fed chair.

Hassett pointed out that the administration’s future actions may depend heavily on the responses to Vought’s queries. “I think that whether the president decides to push down that road or not is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed,” he said.

In response to the growing criticism, the Federal Reserve released clarifying information on its website, countering some of Vought’s concerns. The recent updates included a direct denial of claims regarding the construction of new VIP dining facilities as part of the renovation, addressing a specific accusation that had surfaced during Vought’s public remarks.

While Trump has publicly expressed reluctance to let Powell go, he has indicated he is considering potential successors for when Powell’s term expires next May. Among the rumored contenders is Hassett himself, who has been seen as a strong candidate for the role. Another possible name being floated is former Fed Governor Kevin Warsh, who appeared on a Fox News segment recently to criticize Powell’s handling of the renovation and implied his interest in the Fed chair position.

Warsh described the renovation as “outrageous” and lamented that the Federal Reserve has “lost its way” in both its supervisory functions and monetary policy. He attributed the extravagant spending on the renovation as evidence of this misdirection, suggesting that a significant re-evaluation of the Fed’s priorities is due.

As the political and economic landscape continues to evolve, all eyes remain on both the administration’s strategy regarding Powell and the unfolding developments within the Federal Reserve’s renovation project. The implications of any leadership changes at the central bank could reverberate through financial markets and the broader economy in the months to come.