Scott Calls for Powell’s Exit from the Fed
In Beverly Hills, Sen. Tim Scott (R-S.C.) expressed his hopes—perhaps even a prayer—that Jerome Powell would step down as chairman of the Federal Reserve when his term concludes this month. However, Scott also acknowledged that if Powell is determined to provoke the president, he might stay on longer.
During a discussion at the Milken Conference, Scott said, “Lord, I pray! We need prayer on this issue,” as he tightly clenched his fists and gazed upwards. He added, “Honestly, I think it’s going to be his decision… but I think he’s probably just poking the president in the eye a little bit.”
Scott hinted that Powell could be undermining the policies of Kevin Warsh, whom Trump has nominated as Powell’s successor. Warsh has openly criticized Powell and plans to shift the Fed away from its current focus on issues like ESG and the extensive expansion of the Fed’s balance sheet during Powell’s leadership.
Back in June 2025, Scott had previously questioned Powell regarding the costly new headquarters of the Fed, sparking a contentious investigation by the Justice Department into Powell’s management of the $2.5 billion renovation project.
“One of the questions we had during our investigation was why we even need a beehive on the top floor of the Fed building,” Scott remarked, noting the difficulty in justifying such expenses to taxpayers.
In his discussion, Scott also mentioned that Jay Clayton, a federal prosecutor and former head of the SEC under Trump, developed a compromise to persuade Sen. Thom Tillis to withdraw his support for Warsh’s nomination.
This compromise involved allowing the Fed’s inspector general to investigate the cost overruns from the renovation instead of the Justice Department pursuing a criminal investigation. If necessary, a recommendation might still be made for further inquiry into Powell’s actions.
Although this approach enabled Sen. Tillis to pull Warsh’s nomination, it did little to satisfy Powell, who stated he plans to remain as governor until 2028 unless acquitted of any allegations.
Scott maintains that he doesn’t believe Powell acted criminally but feels that some in the White House may bear responsibility for the mismanagement surrounding renovations and Powell’s testimony.
“It’s certainly incredibly over budget,” Scott noted. “But we need to allow the IG to review everything and clarify the situation.”
Scott has called for Powell to vacate his position when his term ends, cautioning that not doing so would break a longstanding tradition and be a “grave mistake.” He emphasized the importance of the Fed’s independence: “If we believe in the independence of the Fed, it’s crucial that it maintains focus on its dual mission, regardless of who is in charge.”
When asked what Trump could do to influence Powell’s departure, Scott mentioned the limitations—prayer seemed to be among the few options. There were also reports suggesting that some close to Trump thought revoking parking privileges could lead to Powell being situated in a less favorable location within the Federal Reserve Building.
Scott, however, dismissed these ideas with a laugh, remarking, “I think the best chance to get Jay Powell out is just the truth. The truth is, I don’t want my predecessor to influence the Fed.”
