DOJ says it won't reopen probe into Fed's Powell
Add Axios as your preferred source to
see more of our stories on Google.
Former Federal Reserve chair Jerome Powell. Photo: Daniel Heuer/Bloomberg via Getty Images
The Justice Department will not reopen its criminal investigation into former Federal Reserve chair Jerome Powell over the central bank's costly headquarters renovation.
Why it matters: President Trump had asked Attorney General Todd Blanche to review the Fed watchdog's findings and decide "what to do" about Powell. But for now, the former Fed chief will not face a renewed criminal investigation.
What they're saying: "We're not reopening a criminal investigation into him," Blanche told Bloomberg in an interview on Friday.
- Blanche said that Powell "did not act appropriately as far as oversight," but distinguished those failures from potential criminal conduct.
- "Making mistakes and not having any sort of oversight over the folks doing billion-dollar projects isn't necessarily a crime."
Driving the news: The Fed's inspector general said this week that it found no evidence that Powell committed a crime in connection with the renovation, following a months-long investigation.
- The watchdog did fault the Fed's management of the project that saw costs more than double from initial estimates.
- In response to the report, Fed chairman Kevin Warsh said the central bank would commission a separate, independent audit of the project.
Flashback: The criminal investigation into Powell became public in January. In a statement, Powell said the Fed received grand jury subpoenas related to his congressional testimony about the renovation.
- DOJ closed the investigation in April as the Fed inspector general continued its own inquiry.
What to watch: Powell's term as chair expired in May, but he took the unusual step of staying on as a governor, a term that runs through January 2028.
- Powell initially said he would not leave until the criminal investigation was "well and truly over, with transparency and finality."
- Powell later said the administration's broader legal actions against the Fed had left him "no choice but to stay."
- Trump this week renewed calls for Powell to resign from the board. He previously threatened to fire him if he stayed.
What they're saying: A Fed spokesperson declined to comment.
