DOJ Shuts Down Criminal Probe into Powell Over Fed Renovation Scandal

The U.S. Department of Justice confirmed on [date] that it will not reopen a criminal investigation into former Federal Reserve Chair Jerome Powell concerning the central bank's mismanaged headquarters renovation. The decision, announced in Washington, D.C., comes after the Federal Reserve's Office of Inspector General released a report concluding there were no grounds for a criminal referral.

The probe had been examining allegations of misconduct related to the Fed's multi-million-dollar renovation of its Washington headquarters, which had faced criticism for cost overruns and delays. The inspector general's report, which has not been publicly released in full, reportedly found no evidence warranting criminal charges. Powell, who served as Fed Chair from 2018 to 2022, has not been accused of any wrongdoing.

The DOJ's decision to close the matter removes a cloud of legal uncertainty that had hung over Powell and the Fed. It may also dampen political pressure from lawmakers who had called for accountability over the renovation. However, the episode could still fuel debates about transparency and oversight at the central bank. Next steps may include the release of the inspector general's full report and potential congressional hearings on Fed spending.