DOJ Closes Case Against Former Fed Chair Jerome Powell

The Department of Justice (DOJ) has officially closed its criminal probe into former Federal Reserve Chair Jerome Powell, putting to rest months of speculation and uncertainty over his involvement in a building renovation cost overrun scandal. Attorney General Todd Blanche made the announcement, confirming that the investigation would not be reopened.

Powell's term as chair wrapped up in May 2026, but he chose to remain on the Fed board as a governor until January 31, 2028, sending a clear signal that monetary policy decisions shouldn't bend to political intimidation. The central bank plans to hire an independent auditor to review the building costs, which could potentially uncover evidence of illegal behavior.

The DOJ's decision is seen as a significant victory for institutional independence at the Federal Reserve. By shutting down the possibility of reopening the criminal case, the agency has lowered the temperature on executive-central bank relations and sent a clear message that ordinary policy disagreements or bureaucratic overruns won't automatically be weaponized into criminal indictments.