The White House is claiming that Federal Reserve Chairman Jerome Powell is willing to leave the central bank’s Board of Governors after his term expires, although Powell has never made any public comment to support that notion.
In an interview this morning on Fox Business News, Kevin Hassett, the director of the National Economic Council claimed Powell will depart when Kevin Warsh, the president’s choice to become the next Fed chairman, takes over the job.
“He’s really signaled that once there’s a confirmed head chair, that he’ll step aside, and that’s the appropriate thing for him to do,” Hassett said.
However, Hassett’s statement contradicts earlier statements by Powell who said he would remain at the Fed until a criminal investigation against him US Attorney Jeanine Pirro is over. Powell’s chairmanship ended in May, but he still has two years left on his term as a Fed governor.
The investigation, which focuses on whether Powell committed perjury last summer in a Senate hearing on cost overruns connected to renovations at the Fed headquarters, is in limbo. A federal judge has blocked Pirro’s office from issuing subpoenas to Powell and the Fed, but Pirro’s office insists it will appeal the judge’s ruling.
This is not the first time that the White House offered claims about Powell’s departure. Last summer, Bill Pulte, the director of the Federal Housing Finance Agency, tried to push the story that Powell was considering resignation. That turned out to be a lie.
The probe into Powell could also derail the Warsh nomination, with Republican Sen. Thom Tillis repeatedly stating he would block Warsh while Powell was still under investigation. Hassett stated he had not spoken to Tillis regarding the Warsh confirmation.
But Hassett insisted Warsh was on target for confirmation.
“I’m highly confident that that will happen,” he said, adding a confirmation a hearing for Warsh could begin as early as next week.
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