NEC Director Kevin Hassett denies involvement with DOJ investigation of Jerome Powell

ENGLEWOOD CLIFFS, NEW JERSEY: The White House National Economic Council Director Kevin Hassett, tuned in on ‘Squawk Box’ on Monday, January 12, to discuss the ongoing federal investigation against Jerome Powell, the chair of the Federal Reserve.

Hassett stated that he had not been actively involved with the Department of Justice about the case against Powell, noting that he hadn’t spoken to the DOJ before they contacted the Federal Reserve Chair. 

Kevin Hassett on core problems within the Federal Reserve

While on ‘Squawk Box’, Kevin Hassett chimed in on the ongoing federal investigation against Jerome Powell with host Joe Kernen.

He added that while he had nothing to add about the probe itself, he respected the independence of both organizations, noting that they’d have to see how things progressed.

Recalling Powell’s recent statement criticizing the investigation, host Joe Kernen said that Powell had claimed that the DOJ was trying to force him out or pressurize him to do Donald Trump’s bidding about lowering rates.

Hassett said that in time, the truth would come out, but so far, there had been a building that had “dramatic cost overruns,” and plans that looked inconsistent with the testimony.

Kernen added that people who were in the running to replace Powell vocalized their concerns about the Reserve and said that they should have raised rates quicker and kept inflation under control.

However, he added that there had been others who had argued that the economy was in better shape. The host asked whether Hassett thought that there were any core problems within the Federal Reserve. 

“I think that what I’d like to see at the Fed, regardless of who’s Fed Chair, is just a little bit more introspection,” Hassett said while on ‘Squawk Box’.

He added that he wanted the Federal Reserve to admit that it let inflation get out of control, and that it would be nice to know how they planned to tackle it. However, he admitted that the American economy was “booming,” but noted that the credit for the same belonged to Donald Trump’s policies. 

Kevin Hassett chimes in on Trump's frustrations with the Federal Reserve

During the conversation, the NEC Director said that the Reserve had the highest interest rates in the world, which frustrated the president. However, Hassett clarified that Trump’s growing frustration had nothing to do with the investigation.

Hassett added that Donald Trump had been vocal about his dissatisfaction with the Federal Reserve’s interest rates, adding that he was frustrated there were “big cuts” right before the elections and that there were “big hikes” in 2017 before Trump’s inauguration.

“This right here is a legal matter, and again, I’ve not been briefed on what the Justice Department is thinking. And I expect the president has not as well,” Hassett stated.