Jerome Powell making a 'significant mistake' by staying on at the Fed, Sen. Tim Scott says
Federal Reserve Chair Jerome Powell has said he plans to remain a member of the Federal Reserve board after his term as chair expires this month.
TL;DR
- Sen. Tim Scott believes Fed Chair Jerome Powell is making a "significant mistake" by staying on the Fed board after his term as chair ends.
- Scott highlighted that Powell's decision breaks 75 years of precedent where former Fed chairs leave the board.
- Powell's term as Fed chair ends May 15, and his continued presence on the board could prevent President Trump from appointing a majority.
- Powell and Trump have clashed over interest rates, and the Trump administration has investigated the Fed's building renovations.
- Powell plans to remain on the board indefinitely until a federal investigation is resolved.
- A criminal probe into Powell was dropped by U.S. Attorney Jeanine Pirro and referred to the Fed's inspector general.
- Sen. Thom Tillis had previously blocked a nomination due to the probe but ended his block after it was dropped.
- Scott suggested Powell's decision to stay might be an attempt to "poke the president in the eye."