Tim Scott Sides With Powell Over Trump

Senate Banking Committee Chairman Tim Scott said Wednesday that he does not believe Federal Reserve Chairman Jerome Powell committed a criminal act while testifying before Congress last year, despite sharp criticism of Powell’s leadership and judgment.

Scott’s comments introduce new uncertainty into the Trump administration’s ongoing review of the Federal Reserve, including a Justice Department probe tied to the central bank’s controversial building renovation project.

While Scott said he strongly disagrees with Powell’s performance as Fed chair, he made clear that poor preparation or mismanagement does not automatically constitute a crime.

“I have very strong disagreements with him,” Scott said. “But incompetence is not a criminal act.”

DOJ Investigation Centers on Congressional Testimony

The issue dates back to a Senate Banking Committee hearing last June, where Scott questioned Powell about renovation costs and oversight at Federal Reserve facilities. That exchange later became a key focus of a criminal inquiry launched by the U.S. Department of Justice.

Federal investigators are reviewing whether Powell provided misleading or inaccurate testimony under oath during that hearing.

Speaking on Fox Business, Scott said Powell appeared unprepared rather than deceptive.

“I was the one asking the questions, and he was the one answering them,” Scott explained. “What I saw was a serious error in judgment. He wasn’t ready for that hearing — but I do not believe he committed a crime.”

Senate Tensions Could Delay Federal Reserve Nomination

The investigation has already begun to affect Senate operations.

Senator Thom Tillis, a senior Republican on the Banking Committee, has vowed to oppose any Federal Reserve nominees until the Justice Department concludes its review.

That position could complicate the confirmation process for Kevin Warsh, President Donald Trump’s nominee to replace Powell when his term expires in May.

Scott said he remains hopeful the committee will resolve the dispute and allow the nomination process to move forward. However, Tillis’ stance gives him the ability to delay committee approval — potentially slowing a full Senate vote.

Republicans Demand Accountability at the Federal Reserve

The debate underscores growing concern among Republicans about transparency and accountability at the Federal Reserve, particularly as inflation, interest rates, and federal spending remain top issues for American voters.

While Scott stopped short of accusing Powell of criminal wrongdoing, he emphasized that the Federal Reserve must be held to high standards — especially when testifying before Congress.

For now, Powell remains in office, the Justice Department continues its review, and Senate Republicans weigh how aggressively to press for leadership changes at the nation’s central bank.