Micah Jonah
February 5, 2026
Republican Senator, Tim Scott has publicly stated that he does not believe Federal Reserve Chair Jerome Powell broke the law during his testimony to Congress last summer, pushing back against a DOJ investigation that threatens President Donald Trump’s plans to confirm his preferred Fed successor.
The investigation
stems from subpoenas issued to the Fed regarding Powell’s comments on building renovations, which the White House had criticized as overspending. Powell described the probe as intimidation aimed at pressuring the Fed to lower interest rates.
Scott, chair of the Senate Banking Committee, said in an interview that while Powell may have been “inept” in performing his duties, incompetence does not constitute a criminal act. He added that he would tell any prosecutor seeking to investigate Powell the same.
The probe has complicated the confirmation of Trump’s nominee, former Fed Governor, Kevin Warsh, who has been picked to succeed Powell. Senator Thom Tillis has said he will block Warsh’s nomination while the investigation is ongoing, citing concerns about political interference and Fed independence.
Scott expressed optimism that a solution could be found to secure a strong Republican vote for Warsh, though Tillis remains firm in his stance. Meanwhile, there is speculation that Powell may choose to remain on the Fed Board as a Governor after his chair term ends in May, a move that could limit Trump’s ability to appoint another Fed member.
Other committee members, including Kevin Cramer, have echoed Scott’s view that Powell does not belong in a courtroom or face criminal charges, while hoping he will exit the Fed Board gracefully once his term concludes.
The dispute underscores tension between White House and the Federal Reserve over interest rate policy, highlights the political challenges in confirming a new Fed chair amid ongoing investigations.
