Sen. Kevin Cramer (R-N.D.) said Tuesday he wants Federal Reserve Chair Jerome Powell to step down from the central bank entirely when his term as chair concludes next month, rather than stay on as a board member as Powell has previously indicated he might do.
Speaking on CNBC's "Squawk Box," Cramer told host Joe Kernen that he hopes Powell does not remain on the Fed board after his chairmanship ends on May 15. "I hope not, quite honestly," Cramer said when asked whether Powell should stay.
Powell has stated he would continue serving as a board member until the resolution of a criminal investigation into renovations at the Fed. But that probe, led by then-U.S. Attorney Jeanine Pirro for the District of Columbia, was dropped Friday. Pirro has since referred the matter to the Fed's inspector general for a separate review, promising a "comprehensive report in short order."
Cramer, a member of the Senate Banking Committee, noted that Fed chairs rarely remain on the board after their leadership term ends. He suggested now is a "good time for [Powell] to cash in, if you will, on his experience and his Rolodex and his notoriety" in the private sector. "He's certainly earned that opportunity," the North Dakota Republican added.
Powell, a former partner at the Carlyle Group, disclosed wealth of up to $75 million last year, according to Forbes. He was nominated to the Fed board by then-President Barack Obama in 2011 and became chair under President Donald Trump in 2018.
A vacancy on the Fed's board would give President Trump an opportunity to nominate a candidate who aligns with his push for more interest rate cuts. Trump has repeatedly urged Powell to lower rates since returning to office last year. Some Senate Republicans have already backed Kevin Warsh as a potential replacement, with Senator Thom Tillis (R-N.C.) recently voicing support for Warsh after the DOJ ended its probe into Powell.
The inspector general's investigation into the Fed renovation costs—which the central bank attributed to material and labor price increases—remains ongoing. Pirro said the IG has "the authority to hold the Federal Reserve accountable to American taxpayers" and that the outcome should resolve lingering questions.
Powell's term on the Fed board runs through January 2028, but if he steps down, Trump would fill the seat. The president has already moved to reshape federal agencies by replacing independent experts with loyalists, a pattern that could extend to the Fed. Meanwhile, Democrats face risks if they rely solely on midterm hopes, as some analysts warn they could repeat the 1994 mistake of overconfidence.
