Senate Banking Committee Chair Tim Scott said Wednesday that he doesn't think Federal Reserve Chair Jerome Powell committed a crime during his testimony last summer about the central bank's costly renovation project.
Scott, R-S.C., said in an appearance on FOX Business' "Mornings with Maria" that while he has other issues with how Powell has led the central bank and its monetary policy moves, he doesn't believe that the Fed chair committed a crime in his testimony.
"As it relates to the DOJ investigation, I'll tell you what I would tell a prosecutor if they came into my office. I was the one asking the questions, Jay Powell was responding to me. Obviously, he and I have very, very strong disagreements on many issues, No. 1," Scott said. "No. 2, I believe that it's time for a new Federal [Reserve] chair. Thank God almighty, we're getting ready to get one."
"No. 3, I found him to be inept at doing his job, but ineptness or being incompetent is not a criminal act. I believe what he did was make a gross error in judgment, he was not prepared for that hearing. I do not believe that he committed a crime during the hearing," Scott said.
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The Department of Justice opened a criminal inquiry into whether Powell misled Congress during his testimony before the Senate Banking Committee last summer about the Federal Reserve's headquarters renovation, which has run over budget.
The criminal probe came against the backdrop of an effort by President Donald Trump and his allies to pressure Powell and the Fed into cutting interest rates to spur the economy.
Powell denied wrongdoing and called the probe a pretext for exerting political influence over monetary policy decisions.
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A key member of the Senate Banking Committee, Sen. Thom Tillis, R-N.C., responded to the probe by vowing to block any Federal Reserve nomination until the DOJ's investigation of Powell concludes.
"If there were any remaining doubt whether advisors within the Trump administration are actively pushing to end the independence of the Federal Reserve, there should now be none. It is now the independence and credibility of the Department of Justice that are in question," Tillis said last month.
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Scott told Bartiromo on Wednesday that he thinks the investigation of Powell will be resolved and that will clear the path for considering the nomination of former Fed Governor Kevin Warsh to serve as the next chair of the central bank.
Trump nominated Warsh to the role last week, and Tillis reiterated his stance that he won't consider Fed nominees until the DOJ probe is over.
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"I believe that we're going to resolve that issue, we're going to move forward and Thom Tillis will be voting for Kevin Warsh as the next chairman of the Federal Reserve. That's my prediction," Scott said.
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