DOJ will not reopen Jerome Powell criminal probe, Todd Blanche says

The US Department of Justice will not reopen its criminal investigation into former Federal Reserve Chair Jerome Powell over the central bank's overbudget headquarters renovation, Attorney General Todd Blanche has confirmed.

"We're not reopening a criminal investigation into him," Blanche said in an interview on Friday.

The decision appears to close the book on a highly politicised federal inquiry that began in January. Federal prosecutors had issued grand jury subpoenas to obtain records related to the multibillion-dollar project, but a federal judge quashed them in March.

The judge ruled that the subpoenas had been issued for an "improper purpose" and that the government had produced virtually no evidence that Powell had committed a crime. Rather than appeal, the Justice Department chose to close the investigation.

The inspector general's findings

Blanche's announcement comes shortly after the Federal Reserve's watchdog released its own findings. The central bank's inspector general reported that there were no reasonable grounds to believe a federal crime had been committed, meaning no referral to the attorney general was necessary.

However, the inspector general heavily criticised the Fed for significant management and oversight failures that allowed the renovation costs to balloon.

President Donald Trump quickly criticised the decision not to pursue Powell further. In a post on Truth Social on Wednesday, Trump argued that Powell should be "forced to resign" from the Federal Reserve's Board of Governors "at a minimum."

"He can't manage a Building, and he certainly shouldn't be allowed to manage his High Interest Rate Policy," Trump wrote, referring to his long-standing grievances over Powell's interest rate decisions.

What happens next

While Powell is no longer the head of the Federal Reserve—having been succeeded as chair by Kevin Warsh in May—he remains on the Board of Governors. His term on the board runs until 31 January 2028. Trump has repeatedly pressured Powell to step down from the central bank entirely.

Although Powell is in the clear, Blanche did not rule out other legal actions related to the renovation project. He noted that the Fed is bringing in an independent auditor to review the project, a move initiated by the new chair, Kevin Warsh, to tighten oversight.

If that audit uncovers actual evidence of criminal wrongdoing, Blanche said, it could still trigger a fresh investigation.