WASHINGTON (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, adding that the Fed "has a lot to answer for" on renovation cost overruns at its Washington headquarters.

The move comes amid speculation that Trump, who has clashed with Powell over interest rates, might try to use the project to remove the Fed chief “for cause."