DoJ declines to reopen investigation into former Fed chair Jay Powell
The U.S. Justice Department announced it will not reopen a criminal investigation into former Federal Reserve chair Jerome Powell concerning cost overruns tied to the central bank’s building‑renovation project. Justice Department Attorney General Todd Blanche confirmed to Bloomberg News that, while the department will not revive the criminal probe, it has not ruled out further scrutiny of the project’s oversight and could act if new evidence of wrongdoing emerges. The decision follows a finding by the Fed’s inspector general that there were no grounds for a criminal referral or evidence of administrative misconduct, though the report did criticize lax oversight of the renovation costs.
The inspector general’s conclusion sparked renewed political pressure, most notably a fresh call for Powell’s resignation from former President Donald Trump, who has long criticized the Fed chair. Powell, who stepped down as chair in May but remains a Fed governor, faced the scrutiny during his final press conference as chair in April, pledging to stay on the board until the investigation concluded with “transparency and finality.” In response to the oversight concerns, Kevin Warsh, Powell’s successor as Fed chair, announced on Thursday that an independent auditor would be hired to verify the accuracy and compliance of all project expenditures, aiming to address lingering doubts about the renovation’s financial management.
Blanche indicated that if the upcoming independent audit uncovers any criminal conduct, the Justice Department could launch a new investigation. A Fed spokesperson declined to comment on Blanche’s remarks at the time. The outcome of the audit and any potential further action will shape the narrative around Powell’s legacy and the Fed’s internal controls, while also influencing broader debates about accountability within the nation’s central banking institution.
⚡ Effects Interpreter
🌍World Economy
- ▶The world's biggest economies tend to watch each other's data closely.
- ▶Trade ties might tighten or loosen as the numbers sink in.
🏙️Local Economy
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🏦Rates & Banks
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❤️Health
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💷Wealth
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🏠Housing
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