DoJ declines to reopen investigation into former Fed chair Jay Powell

The Justice Department has decided against restarting a criminal probe of Jerome Powell, who led the Federal Reserve until May, over the spiraling costs of the central bank's building renovation. A department spokesperson confirmed the decision on Friday. Attorney General Todd Blanche, speaking to Bloomberg News, which was first to report it, said prosecutors could still examine how the project was supervised and act if evidence of wrongdoing emerges, according to The Guardian.

The Fed's inspector general said Wednesday that it found no basis for a criminal referral and no sign of administrative misconduct connected to the overruns. It did conclude that oversight had been lax, and that finding prompted President Donald Trump, a longtime critic of Powell during both of his terms, to renew his demand that Powell resign. Powell remains on the Fed's board as a governor.

Kevin Warsh, who succeeded Powell as chair, said Thursday that he would bring in an independent auditor to check the accuracy of all the project's costs and whether they complied with rules. Blanche said any criminal evidence that review turned up could lead to an investigation. In April, Powell had said he would stay on the board until the matter was fully resolved.

Summarized by PolitiKool from The Guardian’s reporting. Read the full story at The Guardian →