U.S. Senate Banking Committee Chairman sharply criticizes Powell: calling his retention on the Board a "major mistake"

Jinse Finance reported that on May 6, the decision for Federal Reserve Chairman Powell to remain on the Board after his term ends on May 15 has sparked strong criticism from Senate Banking Committee Chairman Scott. This move, which breaks a 75-year historical precedent, not only intensifies conflicts between the Federal Reserve and the Trump administration but also reshapes the central bank's power structure, injecting uncertainty into the outlook for monetary policy. Scott stated bluntly at the Milken Institute Global Conference that Powell’s action is a "major mistake," violating the 75-year tradition of "new chairman taking office, old chairman stepping down," and is likely to trigger policy conflicts, which is detrimental to both the country and the Federal Reserve. He even remarked that Powell’s approach "is somewhat provocative toward the President." A Federal Reserve spokesperson declined to comment on the matter.