Bessent: Rising government bond yields are a global trend. - U.S. Treasury Secretary Scott Bessent stated that the recent rise in Treasury
Japanese Prime Minister lodges protest with U.S. following killing in Okinawa. - Japanese Prime Minister Sanae Takaichi lodged a protest with the United States on Sunday after a U.S.
Kevin Hassett, the chief economic advisor to U.S. President Donald Trump,
stated on Sunday that it was "time for [Jerome] Powell to move on" and leave the Federal Reserve Board of Governors. The remarks followed an internal report that identified management shortcomings in the central bank's headquarters renovation project, though no evidence of criminal wrongdoing was found.
Hassett, who heads the White House National Economic Council, made the comments on Fox News' *Sunday Morning Futures* program when asked if Fed Chair Jerome Powell should resign. "I think it's time for him to move on and respect the independence of the Fed," he said.
In a report dated September 30, the Fed's internal watchdog stated that it found no evidence of criminal wrongdoing or "administrative violations" regarding the $2.4 billion renovation project in Washington. However, the report did note management missteps that caused the project's cost to nearly double the initial estimate.
Trump reacted via social media, stating that Powell—whom he had repeatedly urged to cut interest rates during his tenure as Fed Chair—"should be forced to resign" from the board.
U.S. Attorney Todd Blanche, whom Trump had asked to review the report, stated in an interview on Friday that the Department of Justice would not reopen a criminal investigation into Powell based on the findings.
The Fed announced that it would hire an independent auditor to review the construction costs. Blanche noted that the Justice Department could launch an investigation if such a review revealed signs of criminal wrongdoing. "If they find anything that amounts to a criminal offense, rest assured—we will investigate it," he said.
Powell has remained on the Federal Reserve Board of Governors since his term as Chair ended in May, breaking with the established tradition of Fed chairs leaving the central bank after their leadership tenure concludes. He stated that threats of criminal prosecution against him and the Fed left him no choice but to stay—a stance that Trump and other administration officials have condemned.
Trump has long pushed the Fed to lower borrowing costs. Last month, policymakers led by Fed Chair Kevin Warsh voted unanimously to raise interest rates by a quarter of a percentage point amid persistent inflation.
"I disagree with the decision, but I acknowledge that he made it with the right intentions," Hassett said on Fox News, commenting on Warsh's vote.
Trump stated that Warsh, whom he selected as Powell’s successor, should make decisions independently. In an interview with *Time* magazine, he said: "I probably would have voted against the board if I were in his shoes."