Bill Hagerty

Sen. Bill Hagerty (R-Tenn.) on Wednesday sent a stark warning to Federal Reserve Chairman Jerome Powell, urging the Fed leader to reconsider his next move at the central bank.

“If I were in Jay’s shoes, certainly I’m not, but if I were, I think it would be a good time to go ahead and depart,” Hagerty, a member of the Senate Banking Committee, said on CNBC’s “Squawk Box.” It’s probably not going to be a very pleasant environment to stick around."

Hagerty’s message underscored the pressure Powell is facing amid President Donald Trump’s repeated attacks and an ongoing Justice Department probe in the central bank’s $2.5 billion renovation project.

Though Powell’s term as chair ends May 15, he is also serving a separate term on the Fed’s governing board through January 2028.

While chairs typically leave the board when their term ends, Powell said he intends to stay on until the DOJ investigation into his congressional testimony about the Fed’s building renovation is resolved.

Trump has nominated former Fed official Kevin Warsh to replace Powell, though his confirmation has stalled due to North Carolina Republican Sen. Thom Tillis’ opposition to the DOJ probe.

“I think we need to get a new chairman into position,” Hagerty said Wednesday. “Kevin is ready to do it. He’s the man for the moment. My view is let’s get it on, let’s get it over with and move forward.”

Hagerty’s remarks come as Trump escalates his long-running attacks on Powell.

In a Fox Business interview last week, Trump threatened to fire Powell if he does not leave when his term expires.

“I’ve wanted to fire him, but I hate to be controversial,” Trump told host Maria Bartiromo. He also suggested the DOJ would not drop its criminal investigation into the Fed’s $2.5 billion headquarters renovation, calling it “probably corrupt” but “really incompetent.”

Powell has denied wrongdoing and previously said he is being targeted for resisting Trump’s demands to cut interest rates.

In early January, after the DOJ opened its probe, Powell issued a remarkable statement accusing the Trump administration of eroding the central bank’s independence through “threats and ongoing pressure.”

The standoff could lead to an unusually turbulent transition at the world’s most influential central bank, which has historically seen smooth transfers of power.

If Warsh is confirmed, he may find Powell still sitting on the Fed’s governing board — an arrangement that hasn’t occurred since the late 1940s, according to the Associated Press.

“I think it would be Powell’s choice to do that. Historically, that has not been the case,” Hagerty said Wednesday.

He continued: “This is typical in most corporate America. When a CEO and chair retires they generally give the new person, the new leader the runway to move forward. I think that would be the appropriate thing to do, but again that will be up to Chairman Powell.”

The Associated Press contributed to this report.