Exploring Presidential Authority Over Federal Reserve Leadership

National Economic Council Director Kevin Hassett disclosed on Sunday that the Trump administration is reviewing the president’s authority to remove Federal Reserve Chair Jerome Powell. In an ABC News This Week interview, Hassett responded to questions about Trump’s potential power to fire Powell, stating, “That’s a thing that’s being looked into.”

He added, “But certainly if there’s cause, he does.” Trump has frequently criticized Powell over high interest rates, labeling him “very stupid” and “Too Late Powell.”

Despite a May 2025 Supreme Court ruling permitting the president to dismiss heads of independent federal agencies, the court noted the Federal Reserve’s unique “quasi-private” structure may pose legal challenges.

Trump’s position has shifted, with an April Truth Social post declaring, “Powell’s termination cannot come fast enough,” followed by a later statement to reporters that he had “no intention” of firing Powell, whose term runs until May 2026.

Investigating Federal Reserve Renovation Oversight

Recent scrutiny of Federal Reserve Chair Jerome Powell intensified after Office of Management and Budget Director Russell Vought questioned the management of the Federal Reserve’s headquarters renovation project.

In a letter to Powell, Vought wrote that Trump was “extremely troubled by your mismanagement of the Federal Reserve System,” raising nearly a dozen questions about whether the renovations complied with National Capital Planning Commission approvals.

Hassett indicated that Powell’s position could depend on the responses, stating, “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.”

This inquiry emphasizes Trump’s push for accountability within federal institutions, particularly as he critiques Powell’s reluctance to lower interest rates, which Powell attributes to inflation concerns tied to Trump’s tariff policies.

Neither the White House nor the Federal Reserve’s Board of Governors commented further on Hassett’s remarks.

Advancing Trade Policy Through Targeted Tariffs

President Trump’s tariff strategy, set to take effect August 1, 2025, aims to address trade imbalances and protect U.S. interests, with a notable 50% tariff on Brazilian imports.

In a letter, Trump cited Brazil’s treatment of former President Jair Bolsonaro, who faces charges related to an alleged 2022 coup attempt, as a factor, stating the tariff was “due in part to Brazil’s insidious attacks on Free Elections.”

Hassett elaborated on ABC’s This Week, saying, “Normally, it’s not necessarily about a specific country, but with Brazil, it is. Their actions have shocked the president at times, and he’s made them clear about that.”

When pressed on how Brazil’s judicial actions constitute a national security threat, Hassett referenced the International Emergency Economic Powers Act, noting, “If he thinks it’s a national defense emergency, or if he thinks a national security threat, then he has the authority under IEEPA.”

Addressing concerns about the U.S.’s $7.4 billion trade surplus with Brazil, Hassett emphasized this strategy: “If you don’t have an overall strategy for this, then there’ll be trans shipping and everything else, and you won’t achieve your objectives.”

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