Rick Scott demands Jerome Powell’s resignation due to Fed’s ‘gross’ mismanagement.
Sen. Rick Scott Calls for Federal Reserve Chairman Jerome Powell’s Resignation
Sen. Rick Scott (R-FL) has intensified his criticism of Federal Reserve Chairman Jerome Powell, demanding his resignation ahead of the highly anticipated summit in Jackson Hole, Wyoming.
Like other Republicans, Scott takes issue with Powell’s assurances that inflation would be “transitory” in 2021 as the country recovered from the pandemic. The Fed abandoned that stance last year in the face of significant price increases and has since implemented a series of rate hikes.
Scott Blames Powell for Missteps
Scott attributes the failure of Silicon Valley Bank earlier this year to a “lack of oversight” and has been scrutinizing the size of the department’s balance sheet since 2020. He holds Powell responsible for what he perceives as a series of missteps by the Fed.
“The only announcement that Jay Powell should be making today is his resignation, effective immediately,” Scott stated. “His gross mismanagement of the Federal Reserve has stolen the American Dream from millions of families and caused massive damage to our economy.”
Powell, however, took a hawkish tone at the annual policy summit, suggesting that further rate hikes might be necessary to achieve the 2% target.
“We are attentive to signs that the economy may not be cooling as expected,” Powell said. “We are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
Powell, who was chosen by former President Donald Trump to serve as Fed chairman in 2018, was renominated for a second term last year. Despite overwhelming confirmation by the Senate, Scott was one of the 19 senators who opposed his nomination.
Scott and another “no” vote, Sen. Elizabeth Warren (D-MA), introduced a bill in March to establish a Senate-confirmed inspector general for the Federal Reserve system. This move was prompted by bank failures and a stock trading scandal that the current inspector general investigated last year.
This is not the first time Scott has called for the resignation of a high-ranking official. As Florida governor, he demanded FBI Director Christopher Wray step down after the agency failed to act on a tip to prevent a school shooting in the state. Earlier this year, he also called on President Joe Biden to resign, sparking a war of words over Scott’s controversial 12-point policy agenda.
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