Federal Reserve Probe Sparks Controversy in Washington

White House economic adviser Kevin Hassett says he wasn't involved in the Justice Department's probe into Federal Reserve Chair Jerome Powell. The investigation focuses on excessive costs of a Fed building project. Powell sees the probe as a ploy for influence over interest rates. Hassett supports Justice's scrutiny.

White House economic adviser Kevin Hassett clarified on Monday that he was not part of discussions concerning the Justice Department's investigation into Federal Reserve Chair Jerome Powell. He also indicated uncertainty about President Donald Trump's approval of the probe.

Hassett, addressing reporters outside the White House, reiterated his lack of involvement, stating, "I've not been involved in conversations with the Justice Department about that." On Sunday, Powell criticized the Justice Department's probe, describing it as a ploy for more control over interest rates, aligning with Trump's desire for substantial cuts.

Amid these developments, Hassett, a potential Trump nominee to replace Powell, questioned Powell's testimony regarding a new Federal Reserve building's financial irregularities. Despite distancing himself from the Justice Department's operations, Hassett expressed support for the investigation, emphasizing the need for transparency given the project's significant cost discrepancies.

(With inputs from agencies.)