The U.S. Department of Justice confirmed on Friday that it will not restart its criminal investigation into former Federal Reserve Chair Jerome Powell concerning the central bank’s costly headquarters renovation. A spokesperson for the department issued the statement, ending a legal inquiry that had drawn significant political attention.
Blanche, speaking to Bloomberg, stated, “We’re not reopening a criminal investigation into him.” However, he cautioned that future legal action remained a possibility, noting that an independent audit of the renovation project could trigger a new investigation if it uncovers evidence of criminal conduct.
The decision follows a report released last week by the Federal Reserve’s inspector general. The watchdog found no reasonable basis to believe a federal crime had been committed that would warrant referral to the attorney general. Despite clearing Powell of criminal liability, the inspector general criticized the central bank for severe management and oversight failures that contributed to the project exceeding its budget.
President Donald Trump reacted sharply to the announcement, taking to Truth Social to criticize the outcome. He wrote that Powell should be “forced to resign” from the Fed’s Board of Governors at the very least. Trump added, “He can’t manage a Building, and he certainly shouldn’t be allowed to manage his High Interest Rate Policy.”
Wow, the DOJ really cleared him entirely. I guess the rumors of impropriety were just that—rumors.
The oversight failures are shocking. How did costs spiral like that without anyone noticing sooner? We need better accountability mechanisms.
I’m skeptical. Saying an audit ‘could’ trigger a new probe feels like leaving the door cracked open for political pressure later.
Trump is still obsessed with Powell. It’s bizarre that he thinks being good at construction translates to monetary policy.
Finally some closure on this. The Fed’s management was sloppy, but that doesn’t automatically equal criminal conspiracy.