Trump's Authority Over Federal Reserve Under Scrutiny

President Donald Trump may have the grounds to dismiss Federal Reserve Chair Jerome Powell if a justified cause is established, stated White House economic adviser Kevin Hassett. Hassett criticized the Federal Reserve, claiming that it faces accountability issues over alleged renovation cost overruns at its Washington headquarters.

Appearing on ABC's 'This Week', Hassett emphasized that any action Trump might take regarding Powell's potential dismissal would greatly depend on the responses to specific inquiries initiated by Russ Vought, the White House budget director. Vought recently criticized Powell over an 'ostentatious overhaul' of Fed buildings, causing pointed exchanges.

President Trump has been vocal about his dissatisfaction with Powell, urging his resignation over disagreements on interest rates. The tension builds as Trump highlights a purported $700 billion cost overrun, marking another chapter in the ongoing conflict between the administration and the Federal Reserve.

(With inputs from agencies.)