US Justice Department not reopening criminal probe into Powell over Fed renovation

The US Justice Department is not reopening a criminal investigation into former Federal Reserve chair Jerome Powell over the central bank's building renovation project, according to reports by The Guardian and Anadolu Agency.

A Justice Department spokesperson made the statement on Friday, according to The Guardian, which credits Bloomberg News with first reporting the development.

The decision does not close the matter entirely. In comments to Bloomberg News, relayed by The Guardian, Attorney General Todd Blanche said he has not ruled out continuing to look into the project's oversight and potentially taking action if evidence of wrongdoing came to light. He also said the department could investigate if a new review found evidence of criminal wrongdoing.

The statement follows a report by the Fed's inspector general on Wednesday. According to The Guardian, the inspector general found no grounds for a criminal referral and no evidence of administrative misconduct tied to the project's cost overruns, but concluded there was lax oversight.

Following that finding, Donald Trump issued a fresh call for Powell's resignation, The Guardian reported. The reports reviewed by Vocemundi do not describe the form or venue of that call.

Powell stepped down as Fed chair in May and has remained on the Fed board as a governor, according to The Guardian. At his final press conference as chair in April, he said he would not leave the board "until this investigation is well and truly over, with transparency and finality", the outlet reported.

His successor, Fed chair Kevin Warsh, said on Thursday that he would hire an independent auditor to review all of the project's costs, according to The Guardian. The outlet quoted Warsh as saying the review would "verify accuracy and compliance". The reports do not identify the auditor or give a timeline for the review.

A Fed spokesperson had no immediate comment on Blanche's statements, The Guardian reported.

The reports do not include the size of the cost overruns or the overall cost of the renovation. They also do not describe when or on what basis a prior criminal investigation into Powell was opened or closed, and they do not include verbatim quotes from Blanche or the Justice Department spokesperson.

What each side says

• Attorney General Todd Blanche: Has not ruled out continuing to examine the project's oversight and taking action if evidence of wrongdoing emerges; the department could investigate if the independent review finds evidence of criminal wrongdoing (per comments to Bloomberg News, relayed by The Guardian).
• Donald Trump: Has called for Powell's resignation following the inspector general's finding of lax oversight, according to The Guardian.
• Fed chair Kevin Warsh: Will hire an independent auditor to review all the project's costs, according to The Guardian.
• Jerome Powell: Said in April he would not leave the Fed board until the investigation was over, according to The Guardian.

Analysis

The Justice Department's statement removes, for now, the prospect of a renewed criminal case against Powell, but Blanche's remarks leave open a path to further action if Warsh's independent audit produces new findings. That links the political and legal pressure on Powell to a review whose scope and timing are not yet described. Possible scenarios include an audit that largely echoes the inspector general's conclusion of lax oversight without misconduct, or findings that prompt the department to revisit the matter. Powell's stated intention to remain on the board until the investigation concludes suggests the dispute over his tenure may continue regardless of the department's current position.

Produced by the Vocemundi newsroom with AI assistance.