White House National Economic Council Director Kevin Hassett criticized Jerome Powell for staying at the Federal Reserve during a television appearance Thursday [1].

The tension highlights a growing conflict between the current administration and the central bank's leadership regarding personnel control. Because the Federal Reserve operates with a degree of independence, the White House has limited direct power over who occupies seats on the board.

Hassett spoke during an appearance on Bloomberg Open Interest, where he addressed the composition of the Fed board [2]. He said that Powell's decision to remain at the institution prevents the administration from appointing another of its own picks to the board [1].

This public critique marks a significant escalation in the administration's efforts to influence the central bank's makeup. The National Economic Council is responsible for coordinating the president's economic policy, and Hassett's comments suggest a desire for a board more closely aligned with White House objectives [1].

Powell, who previously served as the chair of the Federal Reserve, remains a central figure in U.S. monetary policy. The administration's frustration centers on the timing and duration of board tenures, which can span several years and overlap multiple presidential terms [1].

Hassett said that jobs data remains strong, though the primary focus of his remarks remained the structural vacancy on the Fed board [2]. He said that the administration's ability to place a preferred member is currently blocked by Powell's continued presence [1].

“Powell's decision to remain at the institution prevents the administration from appointing another of its own picks.”

This dispute underscores the inherent friction between a politically elected administration and the Federal Reserve's mandate for independence. By publicly calling for a vacancy, the White House is signaling that it views the current board composition as an obstacle to its economic agenda. If the administration continues to pressure Fed officials, it could lead to increased market volatility or concerns over the politicization of U.S. monetary policy.