The White House says Trump possibly has the authority to fire the chairman of the Federal Reserve.

On July 13, American White House economic advisor Hassett stated in an interview with ABC's "This Week" program that if there is a legitimate reason, President Trump has the right to fire Federal Reserve Chairman Powell. He also accused the Fed of being "largely responsible" for overspending on the renovation project at its Washington headquarters. Hassett said whether Trump will fire Powell for "overspending $700 million" will "largely depend on the Fed's response to the inquiries from the White House Management and Budget Office Director Russell Vought". Public opinion believes that Hassett's statement confirms that the Trump administration is using the high cost of renovating the Fed headquarters building as a new "breakthrough" to try to replace this Fed leader before Powell's term ends in May 2026. Last week, Vought harshly questioned Powell about the "luxurious $2.5 billion renovation project" at the Fed building, even comparing it to the Palace of Versailles in France. In response to Vought's accusations, the Fed countered, stating that this was the first comprehensive renovation of the headquarters built in the 1930s, requiring handling of "far beyond expected pollution and leakage issues." When Powell testified to the Senate in June, he also stated that the Fed headquarters is "unsafe and not waterproof." It is worth noting that Hassett, who stated that "Trump may have the authority to dismiss Powell," is currently seen as a potential candidate for the next Fed chairman. Kevin Warsh, a former Fed governor who is also a potential candidate for chairman, said in a Fox News program on the same day that "the Fed has lost its way and needs a change of leadership." However, Financial Services Committee Chairman and Republican French Hill emphasized in an interview with CBS on July 13 that the President does not have the authority to remove the Fed chairman, but Congress will continue to strengthen its oversight of the Fed. Powell was appointed during Trump's previous presidential term. Since Trump returned to the White House this year, he has frequently pressured the Fed to cut interest rates, criticized Powell multiple times, and threatened to remove him from his position as Fed chairman. Powell stated that as President, Trump does not have the legal authority to remove him from office, and he will work until the end of his term, in May 2026.