Senator Tim Scott said Wednesday he hopes the federal investigation into Federal Reserve Chairman Jerome Powell “will go away” so the Senate can consider the nomination of Kevin Wersch, President Donald Trump’s pick to replace the head of the U.S. central bank.
“Ending this action allows us to get the Fed fully operational, back on target,” Scott, chairman of the Senate Banking, Housing and Urban Affairs Committee, said during an appearance on CNBC’s “Squawk Box.”
Senator Thom Tillis, R-N.C. Has vowed to block any Fed nomination until the federal criminal investigation of Powell is resolved. Trump floated the idea of firing Powell last year and criticized the Fed chairman for his refusal to cut interest rates as he wished. Powell has denied any wrongdoing and said he was being targeted for refusing to accede to Trump’s demands.
Powell, whose term as chairman ends in May, was expected to testify before Congress on Feb. 11, but missed that date because of the federal investigation, Scott said.
“I talked to Jay about his testimony,” Scott said. “I recommended that he come before the committee.”
“At this point he is more concerned about criminal proceedings,” he said. “And I got that.”
Congress can compel any elected official to testify, but the Banking Committee did not do so with Powell in this case.
The Fed declined to comment on whether Powell had refused to testify.
Tillis is otherwise a supporter of Warsh, who Trump nominated for the role in January, but his blockade doubled down after a meeting with the Fed nominee on Tuesday.
“It’s not about people, it’s about the process,” Tillis said. “I think that’s dishonest.”
“This is a bedrock principle of the Fed’s independence,” Tillis told reporters Tuesday. “I have no earthly idea how the market would react if suddenly the perception became that the Fed chairman acts at the pleasure of the president.”
Another member of the Banking Committee, Senator Kevin Cramer, R-N.D. told CNBC on Wednesday that there was speculation that some Democrats might support Warsh’s nomination.
Cramer, who was scheduled to meet with Warsh on Wednesday, said, “No matter what he has said or what he has done, there is really no reason why Democrats should not support his nomination.” “Certainly, when he goes to trial, they will be harsh in his interviews and cross-examinations. But I think we need to stay on track to get him across the finish line so that there is no gap between the end of Jay Powell’s term and the beginning of the new term.”
Fellow Banking Committee member Sen. Jim Banks, R-Ind., said Wednesday that he had met with Warsh and urged the Senate to confirm him immediately.
“President Trump’s Federal Reserve Chairman Kevin Wersh understands the importance of reducing high costs and interest rates for working families. He has the experience to get it done and the Senate should confirm him as soon as possible!” Banks said in a post on x Which included a photo of the senator and Varsh.
Powell’s investigation is based in part on testimony Powell gave to the Senate Banking Committee last year. Scott has said in the past that he does not believe Powell committed any crimes in his testimony, a sentiment he reiterated Wednesday. He said the Senate would begin confirmation hearings for Warsh “as soon as possible.”
Scott said of Powell, “At the end of the day … he certainly wasn’t prepared when he was in front of the committee.” “I think he was badly unprepared. But he did not commit any criminal acts when he was before the committee.”
— Steve Liesman Contributed to this report.