DOJ Won't Reopen Criminal Probe Into Fed's Powell

The Justice Department will not reopen a criminal probe into former Fed Chair Jerome Powell over the central bank's over-budget headquarters renovation. Attorney General Todd Blanche confirmed the decision in a Friday interview with Bloomberg News.

• Blanche did not rule out future DOJ action if new evidence emerged.
• An independent audit of the renovation could trigger an investigation, Blanche said.
• The Fed's inspector general found no reasonable grounds to believe a federal crime occurred.
• The watchdog did fault the Fed for major management and oversight failures driving cost overruns.

Why it matters: The inspector general's finding removed the clearest legal basis for a criminal referral, but an independent audit keeps future exposure alive.

• President Trump called for Powell to resign from the Fed's Board of Governors after the inspector general report.

How 8 sources split on this story

What’s next: An independent audit of the renovation project is underway and could prompt further DOJ review.

• What will an independent audit of the renovation find, and will it meet the threshold Blanche described for a new investigation?
• Does Powell face any remaining legal or regulatory exposure from the inspector general's management findings?