US justice department will not reopen criminal probe of Fed’s Jay Powell
Source: FT World ↗ (cross-verified by 2 outlets — full list below)
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. The decision was confirmed by a department spokesperson on Friday, after Attorney General Todd Blanche told Bloomberg News that while the Justice Department is not reviving the probe, he has not ruled out further scrutiny of the project’s oversight should new evidence of wrongdoing emerge. The Fed’s inspector general had earlier concluded there was no basis for a criminal referral or administrative misconduct, though it noted lax oversight, prompting renewed calls for Powell’s resignation from former President Donald Trump. Powell, who stepped down as chair in May but remains a Fed governor, pledged at his final press conference in April to stay on the board until the investigation is “well and truly over, with transparency and finality.”
The inspector general’s findings highlighted deficiencies in how the renovation’s expenses were monitored, but stopped short of identifying illegal activity. In response, 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 costs, aiming to address the oversight gaps identified. Blanche emphasized that any new review uncovering criminal conduct could trigger a Justice Department investigation, underscoring that the matter remains open to further action despite the current decision not to reopen the case.
The development keeps the renovation controversy in the public eye, with implications for both the Federal Reserve’s governance and political scrutiny of its leadership. While the Justice Department’s stance halts immediate criminal proceedings, the planned independent audit may produce findings that influence future oversight policies and could affect Powell’s standing within the Fed and among critics. The Fed has not provided an immediate comment on the Attorney General’s remarks, leaving observers to watch how the forthcoming audit and any potential new evidence might shape the narrative around the renovation’s management and Powell’s legacy.
⚡ Effects Interpreter
🌍World Economymedium impact
What this means for you
- ▶Trade relationships can warm or cool depending on how this unfolds.
- ▶Shifts in government policy can ripple into business confidence and investment.
🏙️Local Economylow impact
What this means for you
- ▶Modest businesses nearby might tweak their prices in the weeks ahead.
- ▶The knock-on for local trade is usually gradual rather than sudden.
🏦Rates & Banksmedium impact
What this means for you
- ▶The cost of borrowing rarely moves on politics alone, but it can add pressure.
- ▶Currency swings triggered by politics can filter into borrowing costs down the road.
❤️Healthmedium impact
What this means for you
- ▶Community spirit typically steadies nerves when headlines feel unsettling.
- ▶A story like this can linger in the back of people's minds for a while.
💷Wealthmedium impact
What this means for you
- ▶Savers with a clear plan tend to feel less rattled by a story like this.
- ▶Your household's overall financial health matters more than any one day's numbers.
🏠Housinglow impact
What this means for you
- ▶The property ladder rarely wobbles much from a single piece of news.
- ▶Buyers and renters could notice only a soft drift, if anything at all.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.