Now, central bank chief targeted for ‘ostentatious’ Fed renovation costs

WASHINGTON: US President Trump has the authority to fire Federal Reserve chair Jerome Powell for cause if evidence supports that, White House economic adviser Kevin Hassett said Sunday, adding the Fed “has a lot to answer for” on renovation cost overruns at its Washington headquarters.

Hassett said any decision by Trump to try to fire Powell over what the administration calls a $700 million cost overrun “is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed”.

Vought, White House budget director, last week slammed Powell over an “ostentatious overhaul” of the Fed’s buildings and answers to a series of questions about the $2.5 billion project.

In a post, he compared the project to France’s Palace of Versailles, with rooftop gardens, and “premium marble”. Trump has repeatedly called for Powell’s resignation for failing to lower interest rates since he returned to office in January.

REUTERS