President Trump praised economic adviser Kevin Hassett at a White House event and suggested he may keep Hassett in his current role while deciding on a nominee for Federal Reserve chair. Hassett defended Fed Chair Jerome Powell amid a Justice Department inquiry into $2.5 billion in renovation cost overruns, saying issues like asbestos could explain the excess. Powell has denied wrongdoing, and critics say the probe risks politicizing the Fed. Trump said he is considering either Hassett or former Governor Kevin Warsh for the Fed chair and has no plan to remove Powell.
Trump Praises Economic Adviser Kevin Hassett, Says He May Keep Him as Fed Nomination Looms
FILE PHOTO: U.S. President Donald Trump listens as National Economic Council Director Kevin Hassett speaks with the media in the Oval Office, at the White House in Washington, D.C., U.S., September 5, 2025. REUTERS/Brian Snyder/File Photo
WASHINGTON, Jan 16 - President Donald Trump on Friday publicly praised his economic adviser Kevin Hassett at a White House event and said he may prefer to keep Hassett in his current role while deciding whom to nominate as the next chair of the Federal Reserve.
Speaking to attendees, Trump singled out Hassett for his television appearances and warned that moving him to the Fed would be a loss for the White House team.
"I see Kevin's in the audience, and I just want to thank you. You were fantastic on television today. I actually want to keep you where you are, if you want to know the truth," Trump said. "Kevin Hassett is so good. I'm saying, 'Wait a minute, if I move him -- these Fed guys, certainly the one we have now, they don't talk much.' I would lose you. It's a serious concern to me."
Hassett earlier addressed a Justice Department inquiry into Federal Reserve Chair Jerome Powell concerning cost overruns on a $2.5 billion renovation of two historic buildings at the Fed's Washington headquarters. Powell has denied any wrongdoing.
In a Friday interview on Fox Business Network's "Mornings with Maria," Hassett defended Powell, suggesting the overruns could be explained by issues such as asbestos and expressing frustration that the Fed had not been more transparent.
"Jay is a good man - I expect that there's nothing to see here, that the cost overruns are related to things like asbestos, as he says. But I sure wish they had been more transparent," Hassett said.
Possible Fed Nominees
In a Reuters interview earlier this week, Trump said he had no plan to remove Powell from the Fed and indicated he was considering nominating either Hassett or former Fed Governor Kevin Warsh to chair the central bank.
"The two Kevins are very good," Trump told Reuters. "You have some other good people too, but I'll be announcing something over the next couple of weeks." At Friday's event he again praised Hassett and told White House Chief of Staff Susie Wiles, "You've been incredible. We don't want to lose him, Susie, but we'll see how it all works out."
Political Reaction
The Justice Department inquiry has drawn criticism from several Republican U.S. senators, foreign economic officials, investors and former U.S. government officials from both parties who say the probe risks politicizing monetary policy and the Fed's independence.
(Reporting by Trevor Hunnicutt and Bo Erickson; editing by Susan Heavey, Colleen Jenkins and Rod Nickel.)
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