Trump team hopes positive inspector general report leads to low-drama Powell exit
The article centers heavily on the Trump administration's perspective through Kevin Hassett's statements, with minimal counterbalance or skepticism. Language like 'off-ramp' and 'peacefully exit' frames Powell's departure as desirable and inevitable rather than contentious. The framing accepts Hassett's narrative that the IG investigation is independent Fed oversight rather than addressing Powell's substantive claim that Trump weaponized it—this framing choice favors the administration's position.
Primary voices: elected official, state or recognized government
- This article does not address the substance of Powell's allegations that the DOJ investigation was politically motivated retaliation for interest-rate disagreements.
- This article does not provide Powell's direct response or statement to Hassett's 'off-ramp' comments beyond his prior public positions.
- This article does not examine the IG investigation's findings or methodology in detail, treating its conclusions as presumptively credible.
- This article does not contextualize Fed independence norms or expert commentary on whether the current pressure on Powell represents an unprecedented breach.
Framing may shift significantly once the Horowitz IG report is released and/or Warsh is confirmed—the 'off-ramp' thesis depends on report timing and tone.
Government-sourcedEstablishment framingStatus-quo framing
National Economic Council Director Kevin Hassett expressed hope Monday that there is an off-ramp for Federal Reserve Chairman Jerome Powell to peacefully exit the central bank.
Powell’s term as chairman is ending Friday. But in a highly unusual move, he has vowed to stay on at the central bank as a board member until the federal investigation into him is “well and truly over with transparency and finality,” setting the Fed chairman up for conflict with the Trump administration.
Hassett said this week that he expects Powell to leave if Federal Reserve Inspector General Michael Horowitz’s report comes out, “and he’s happy with the results.”
Hassett said during an interview on CNBC’s Squawk Box that he “would guess that the off-ramp for Jay would be if the inspector general’s report comes out soon and he’s happy with the results, then I would expect that he would leave.”
The investigation into Powell surrounds concerns about his oversight of the renovation of the Federal Reserve building in Washington. The Justice Department launched a criminal investigation into Powell in early January to probe whether he lied or misrepresented the taxpayer-funded, multibillion-dollar renovation of the Fed headquarters building during congressional testimony in June 2025.
Powell maintained his innocence and suggested Trump had fueled the investigation into him due to the pair’s disagreement over interest rates, violating the central bank’s independence. Trump wanted the central bank to lower rates, which the Fed Board of Governors has refused to do, and repeatedly mused about firing the chairman before the DOJ launched its investigation.
The DOJ dropped its investigation into Powell in late April. At the time, U.S. Attorney for the District of Columbia Jeanine Pirro said that Horowitz had been asked to scrutinize the building cost overruns.
Hassett pushed back against Powell’s concerns on Monday that Trump violated the Fed’s independence. And he expressed confidence that Kevin Warsh, Trump’s nominee to replace Powell at the Fed, will craft an environment “less prone to creating political conflicts.” The Senate is expected to confirm Warsh as the next chairman this week.
“I think in the end, Kevin will talk to Jay and see what it takes, but again, where we are is that the inspector general of the fed is investigating the building situation, and so it’s not like the White House is disrespecting the independence of the fed, it’s the fed itself that’s looking into it,” Hassett said.
“I think there’s an underappreciated reason why markets are doing so well — that there’s going to be a change of leadership at the Fed, that leadership is going to be more level-headed, less prone to creating political conflicts that are, you know, different from the charge of the Fed,” he added.
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