The U.S. Department of Justice announced Friday it will not reopen a criminal investigation into former Federal Reserve Chair Jerome Powell regarding the central bank’s multibillion-dollar headquarters renovation, following the release of an internal watchdog report that found no evidence of criminal wrongdoing.
Attorney General Todd Blanche confirmed the decision in an interview with Bloomberg, stating, “We’re not reopening a criminal investigation into him.” The probe, which began in January, was closed after a federal judge in March quashed grand jury subpoenas seeking related records, ruling they were issued for an improper purpose and lacked sufficient evidence of criminal activity. The DOJ did not appeal the ruling and instead closed the investigation.
The Federal Reserve’s Office of Inspector General released a report this week concluding there were no reasonable grounds to believe a federal crime had occurred, though it criticized the central bank for major management and oversight failures that contributed to the project’s cost overruns. The renovation, initially budgeted at $4.5 billion, has faced scrutiny over its escalating expenses and procurement processes.
Former President Donald Trump criticized the decision on Truth Social, calling for Powell’s resignation from the Fed’s Board of Governors. “He can’t manage a Building, and he certainly shouldn’t be allowed to manage his High Interest Rate Policy,” Trump wrote. Powell remains on the Fed’s board, where his term extends through January 31, 2028.
Fed Chairman Kevin Warsh, who succeeded Powell in May, announced plans to bring in an independent auditor and strengthen oversight of the renovation project. The Justice Department’s decision closes the matter for now, though Blanche did not rule out future action if the independent audit uncovers new evidence of wrongdoing.