Department of Justice Declines to Reopen Investigation into Former Fed Chair Powell

The Department of Justice has declined to reopen a criminal investigation into former Federal Reserve Chair Jerome Powell regarding cost overruns associated with a central bank renovation project. This decision follows a report from the Federal Reserve’s inspector general, which found no evidence of criminal activity or administrative misconduct, though it did identify deficiencies in project oversight.

Despite the closure of the criminal inquiry, the Attorney General has indicated that the department retains the authority to pursue further action should new evidence of wrongdoing emerge. The current Federal Reserve leadership has committed to an independent audit to verify the accuracy and compliance of all project-related expenditures.

These developments occur amidst ongoing political pressure regarding the governance of the Federal Reserve. While the immediate legal threat to the former chair has subsided, the commitment to an independent audit suggests continued institutional focus on financial transparency and internal controls to mitigate future reputational and governance risks.