Sen. Tim Scott (R-SC), chairman of the Senate Banking, Housing, and Urban Affairs Committee, backed Federal Reserve Chairman Jerome Powell in the face of the Justice Department’s investigation into his conduct, despite his policy disagreements with the central banker.
Scott said Wednesday that he does not believe Powell lied during his 2025 testimony before the Senate banking committee, which has become the epicenter of the DOJ’s criminal investigation into Powell. The controversy centers on statements Powell made under oath regarding billion-dollar renovations to the Federal Reserve buildings in Washington.
“I believe what he did was make a gross error in judgment,” Scott said. “He was not prepared for that hearing. I do not believe that he committed a crime during the hearing.”
Scott, who presided over the hearing as chairman, made the comments in a Fox Business interview on Monday.
“I was the one asking the questions,” Scott said. “Jay Powell was responding to me. Obviously, he and I have very, very strong disagreements on many issues, No. 1. No. 2, I believe that it’s time for a new Federal [Reserve] chair, and thank God almighty we’re getting ready to get one. No. 3, I found him to be inept at doing his job. But ineptness or being incompetent is not a criminal act.”
The top Republican on the banking committee discussed his “very productive” conversation with Sen. Thom Tillis (R-NC), who has signaled he is a “no” vote on the confirmation of President Donald Trump’s new Fed chairman nominee, Kevin Warsh. Tillis said Friday that he will oppose Warsh’s confirmation “until the DOJ’s inquiry into Chairman Powell is fully and transparently resolved.”
THOM TILLIS’S FIRM ‘NO’ ON KEVIN WARSH AS FED CHAIRMAN COULD COMPLICATE NOMINATION
A “no” vote from Tillis would likely mean a no-go for Warsh, as the North Carolina senator sits on the banking committee, through which Warsh’s nomination has to pass before it gets to a Senate floor vote.
“I believe that we are going to resolve that issue, we are going to move forward, and Thom Tillis will be voting for Kevin Warsh as the next Chairman of the Federal Reserve,” Scott said. “That’s my prediction.”
