White House adviser Hassett supports DOJ probe of Fed's Powell over building costs

White House economic adviser Kevin Hassett said on Monday he was not involved in conversations with the Justice Department about its probe into Federal Reserve Chair Jerome Powell and did not know whether President Donald Trump had approved it.

“I’ve not been involved in conversations with the Justice Department about that. I’ve not talked to the Justice Department ahead of them contacting Jay and so I don’t really have anything to add, other than I respect the independence of the Fed and the independence of the Justice Department, and we’ll see how it goes,” Hassett told CNBC’s “Squawk Box.”

Asked later outside the White House if he knew whether Trump had approved the probe, Hassett said, “I do not.”

In a sharply worded video statement on Sunday, Powell called the Justice Department probe a “pretext” to gain more influence over interest rates Trump wants cut dramatically.

However, Hassett, a possible Trump pick to replace Powell, questioned Powell’s congressional testimony about the Fed’s new building construction, which is at the center of the Justice Department’s probe.

“Right now, we’ve got a building that’s got like, dramatic cost overruns and plans for the buildings that look inconsistent with the testimony, but again, I’m not a Justice Department person. I hope everything turns out okay for Jay,” Hassett told “Squawk Box.”

Later, Hassett said he would support the investigation if he were in charge of the Fed, arguing to reporters it “seems like the Justice Department has decided that they want to see what’s going on over there with this building that’s massively more expensive than any building in the history of Washington.”

“And if I were Fed Chair, I would want them to do that,” Hassett added.

Reuters