Kevin Hassett (left) and Kevin Warsh have emerged as favourites to become the next Federal Reserve chairman. Donald Trump’s hunt for the next chair of the Federal Reserve is bec

WASHINGTON, July 13 (Reuters) - U.S. President Donald Trump has the authority to fire Federal Reserve Chair Jerome Powell for cause if evidence supports that, White House economic adviser Kevin Hassett said on Sunday and that the Fed "has a lot to answer for" on renovation cost overruns at its Washington headquarters.

The Fed is self-funding and doesn’t need outside approval for building projects, according to the law that created the central bank.

President Trump appears to be inching closer to firing Jerome Powell as Federal Reserve chair, according to news reports and his own comments. Bloomberg reported that the president is likely to fire Powell "soon,

Kevin Hassett has emerged as a serious contender to succeed Jerome Powell, posing a possible threat to Kevin Warsh, an early favorite for the post.

In an interview with ABC News, Kevin Hassett was also pressed about the president's decision to hit imports from Brazil with steep tariffs.

National Economic Council Director Kevin Hassett joins ‘Squawk Box’ to discuss President Trump's recent tariff announcement on Europe and Mexico, his views on the work of Fed Chair Jerome Powell, and more.

Federal Reserve Chair Jerome Powell has asked the U.S. central bank's inspector general to review the costs involved in the renovation of its historic headquarters in Washington, as Trump administration officials intensify their criticism of how the Fed is being run.