Tim Scott

Senate Banking Committee Chairman Tim Scott, R-S.C., accused Federal Reserve Chair Jerome Powell of "poking the president in the eye" by refusing to step down from the central bank's board at the end of his term, criticizing the move as a departure from decades of tradition.

"He's breaking 75 years of precedent," Scott said Tuesday at the Milken Institute Global Conference, according to CNBC. "Every time you get a new chairman, the former chairman leaves. That's good news because what you don't want are these philosophies in conflict."

"I think for the country and for the Fed, it would be best if he left," he said.

Powell's term as Fed chair ends May 15, but he has indicated he plans to remain on the Board of Governors — a position he could hold until 2028. The decision would limit President Donald Trump's ability to install a majority more aligned with his economic agenda.

Newsmax reached out to the Federal Reserve for comment but did not receive an immediate response.

The clash underscores the ongoing tensions between Powell and Trump, who has repeatedly pushed for lower interest rates and criticized the Fed's direction.

Trump has also floated removing Powell, while his administration launched an investigation into cost overruns tied to the Fed's building renovations, along with Powell's testimony before Congress.

Despite the pressure, Powell says he will not step down while the matter remains unresolved.

"I've said that I will not leave the board until this investigation is well and truly over with transparency and finality, and I stand by that," Powell said. "I'm encouraged by recent developments, and I'm watching the remaining steps in this process carefully."

In a key shift, U.S. Attorney Jeanine Pirro dropped her criminal probe into Powell after setbacks in federal court, referring the matter to the Fed's inspector general. The move cleared a major obstacle for Kevin Warsh, Trump's nominee to succeed Powell.

Sen. Thom Tillis, R-N.C., a crucial vote on the Senate Banking Committee, had threatened to block Warsh's nomination while the investigation remained active. He lifted that hold in April after the criminal probe was dropped.

The committee has since advanced Warsh's nomination, with a full Senate vote expected as soon as next week.

Scott has previously said he does not believe Powell committed a criminal act and noted earlier this year that he hoped the investigation "goes away."