finance
Sen. Tim Scott Criticizes Powell's Plan to Remain Fed Chair
Republican Sen. Tim Scott criticized Federal Reserve Chair Jerome Powell for planning to remain on the Fed's Board of Governors after his chair term ends on May 15, 2026. Scott said the move breaks 75 years of precedent and suggested it might be aimed at President Trump. Powell cited an ongoing investigation into Fed headquarters renovations as a reason for staying until 2028.
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Sen. , criticized Federal Reserve Chair Jerome Powell's decision to stay on the central bank's Board of Governors after his term as chair ends, calling it a 'significant mistake' during remarks at the Milken Institute Global Conference on Tuesday. Scott said Powell is breaking 75 years of precedent by remaining on the board, where every previous chair has left upon a new appointment.
Powell would be only the third chair in history to stay on the board after his term as chair ends. Powell announced last week that he plans to remain a member of the Federal Reserve board after his term as chair expires on May 15, 2026. He can serve on the Federal Reserve Board of Governors until 2028.
'I've said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that. I'm encouraged by recent developments, and I'm watching the remaining steps in this process carefully,' Powell said.
'My concern is legal attacks on the Fed, which threaten our ability to conduct monetary policy without considering political factors,' Powell added.
The Trump administration investigated Powell and the Fed over cost overruns at the central bank's headquarters and related testimony Powell gave to Congress. 5 billion. Scott asked a question about the Fed’s new headquarters during a Senate Banking Committee hearing in June 2025.
5 billion renovation led to a DOJ investigation about his handling of the project. Scott said the renovations were incredibly over budget and the IG should dig into the information. U.S.
Attorney Jeanine Pirro dropped her criminal probe into Powell after setbacks in a federal court and referred the investigation to the Fed's inspector general. The Fed inspector general could recommend to the DOJ to probe Powell if warranted. U.S.
