Trump advisor rips Powell for 'out of control' interest rates as feud over Warsh nomination heats up

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Trump advisor rips Powell for 'out of control' interest rates as feud over Warsh nomination heats up

Sen Thom Tillis vowed to block Trump's Fed nominee until Powell probe is resolved

Max Bacall Fox News

Published

February 2, 2026 10:44am EST

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Americans crushed by high mortgage rates and rents are paying the price for a Federal Reserve that allowed rates to spiral "out of control" under Chair Jerome Powell, Trump economic advisor Kevin Hassett said Sunday — amid growing political friction over a Justice Department investigation targeting Powell.

"The number one affordability problem that Americans have is high mortgage rates, high rents that came about because of the huge increase in interest rates that happened after Joe Biden and Jay Powell let interest rates get out of control," Hassett said on "The Sunday Briefing."

Hassett argued that the Fed should focus on keeping interest rates and unemployment low and "getting the balance sheet as lean as possible," and that it should do it "the old-fashioned way, quietly."

TRUMP'S FED CHAIR PICK KEVIN WARSH IGNITES FIGHT OVER INDEPENDENCE ON CAPITOL HILL

Trump economic advisor Kevin Hassett accuses Fed Chair Jerome Powell of letting interest rates "get out of control." (Kevin Dietsch/Getty Images; Al Drago/Bloomberg via Getty Images)

He claimed the Fed was "forthcoming" with the DOJ's investigation into whether Powell was truthful during congressional testimony regarding the cost and scope of renovations to the Fed's two main buildings on the National Mall, which have overrun their expected budget and are projected to cost $2.5 billion.

No charges have been filed, and Powell has denied any wrongdoing.

LEAVITT ACCUSES SEN TILLIS OF HOLDING US ECONOMY 'HOSTAGE’ OVER FED NOMINATION DISPUTE"All these things are things that are way out of the norm of Federal Reserve policy," Hassett said, pushing back on calls from Sen. Thom Tillis, R-N.C., to drop the investigation.

Tillis has vowed to "oppose the confirmation of any Federal Reserve nominee, including for the position of Chairman, until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved."

Kevin Hassett, director of the National Economic Council, is seen outside the White House in Washington, D.C., on June 30, 2025. (Aaron Scwartz/CNP/Bloomberg via Getty Images)

Although the investigation formally has nothing to do with Powell’s responsibilities as Fed chair, a bipartisan group of lawmakers has interpreted the probe as a way for Trump to put pressure on Powell to cut interest rates — a move Powell has resisted. He believes making that call at the president’s request would jeopardize the Fed’s independent decision-making.

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The criminal inquiry targeting Powell marks an extraordinary escalation in Trump's feud with the central bank.

Supporters of Kevin Warsh, the president’s pick to replace Powell, praise his qualifications, while critics question whether he would maintain the Fed’s independence or align its operations with the president’s political goals.

Fox News Digital's Amanda Macias and Leo Briceno contributed to this report.

Trump discusses DOJ probe of Fed Chair Jerome Powell on CBS

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Max Bacall is an Associate Editor for the Flash/Media/Culture team at Fox News Digital.

Trump advisor rips Powell for 'out of control' interest rates as feud over Warsh nomination heats up