Powell making ‘significant mistake’ staying on at the Fed
Committee Chairman Sen. Tim Scott (R-SC) delivers an opening statement during the Senate Banking, Housing and Urban Affairs Committee confirmation hearing for U.S. President Donald Trump’s nominee for Federal Reserve Chairman, Kevin Warsh, at the Dirksen Senate Office Building in Washington, DC on April 21, 2026.
Andrew Harnik | Getty Images
Senate Banking Committee Chairman Tim Scott said Federal Reserve Chairman Jerome Powell made a “significant mistake” by remaining on the Federal Reserve Board of Governors after the central bank’s term ended.
At the Milken Institute Global Conference on Tuesday, RS.C. “It breaks a 75-year tradition. Every time you elect a new president, the old president leaves. That’s good news because what you don’t want is a clash of philosophies,” Scott said.
“I think it would be best for the country and the Fed for him to leave,” Scott said.
Powell’s term as Fed chairman ends May 15. By remaining in office, Powell prevents President Donald Trump from gaining a majority on the board, which would allow Powell to serve until 2028.
A Fed spokesman declined to comment on Scott’s remarks.
His decision to remain on the Fed board comes as Powell and Trump were at odds last year over the president’s calls for lower interest rates. Trump floated the idea of firing Powell, and his administration launched an investigation into cost overruns on the Fed’s ongoing building renovations and related testimony Powell gave to Congress.
Powell announced last week that he planned to remain on the board for an indefinite period while the investigation continues.
“I have said I will not leave the board until this investigation is completed in a transparent and definitive manner, and I stand by that. I am encouraged by recent developments and am carefully monitoring the remaining steps in this process,” Powell said. he said.
After setbacks in federal court, U.S. Attorney General Jeanine Pirro dropped her criminal investigation into Powell, referring the investigation to the Fed’s inspector general. The move helped remove the political hurdle that threatened the candidacy of Powell’s successor, Kevin Warsh.
Senator Thom Tillis (RC), a key vote on the Senate banking panel, had promised that he would not back Warsh unless the Trump administration dropped the investigation into Powell. Tillis ended his blog in April after the criminal investigation was dropped. The committee advanced Warsh’s nomination last week. The full Senate is expected to vote on Warsh next week.
Scott said he did not believe Powell committed criminal conduct and said he hoped the criminal investigation would “go away” in March.
At the Milken Institute on Tuesday, Scott said of Powell’s decision to stay: “I think maybe he poked the president in the eye a little bit.”
