Tim Scott Breaks With Trump Administration Over DOJ’s Jerome Powell Probe

Senate Banking Committee Chair Tim Scott on Wednesday split from the Trump administration over its criminal probe of Federal Reserve Chair Jerome Powell, saying he doesn’t believe Powell committed a crime.

“I found him to be inept at doing his job, but ineptness or being incompetent is not a criminal act,” Scott said during an interview on Fox Business, his first substantial comments on the matter.

Powell in January announced that the U.S. attorney for the District of Columbia, Jeanine Pirro, had launched a criminal investigation into him, calling it an “unprecedented” act of political pressure.

“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.

Sen. Thom Tillis, a critical swing vote on the chamber’s Banking Committee, said this week that he would not be “budging one inch” on the confirmation process for Kevin Warsh, President Donald Trump’s nominee for Powell’s replacement, until the investigation into Powell was over.

Tillis said Tuesday he thought Warsh was a “fine” fit for the role “at some point in the future if not this Congress, then the next Congress, if they don’t get this investigation done.”

“I’m not budging one inch,” he added. “This is foundational to Fed independence, and if you reward this sort of behavior and there’s no compelling evidence that could convince me or a jury that he’s guilty of it, then you’ve got to stand on Fed independence.”

Scott has been critical of Powell in the past but had not yet weighed in on the criminal probe. He questioned Powell about a host of expensive renovations at the Fed’s D.C. headquarters, including marble stoning, water features and a rooftop terrace, during a committee hearing in June 2025. Top Trump administration officials have been critical of Powell’s handling of the building project for months, using it as a reason to call for his resignation or firing.

Scott said on Wednesday that he believed Powell was “unprepared” for the hearing and “made a gross error in judgment” while overseeing the Fed renovation — but reiterated that neither of those are criminal offenses.

Trump initially distanced himself from the investigation by claiming to have no knowledge of it, but this week, speaking from the Oval Office, he offered support for the probe, saying Pirro should “take it to the end and see.”

In response to questions about the investigation from CNBC last month, the Justice Department said, without naming Powell, that Attorney General Pam Bondi instructed all U.S. attorneys “to prioritize investigating any abuse of taxpayer dollars.”