Kevin Hassett, one of President Donald Trump's longest-serving economic aides, is the early frontrunner to replace Jerome Powell as Federal Reserve chief next year, according to people familiar with the process. Bloomberg's Molly Smith has more.

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.

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

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.

Kevin Hassett, President Donald Trump’s longest-serving economic adviser, is a leading contender to become the next Federal Reserve chairman, a position with significant influence over interest rates and the US economy.

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.