DOJ Drops Reopening of Powell Probe Amid Lax Oversight Concerns

The US Justice Department has decided not to reopen its criminal probe into former Federal Reserve Chair Jerome Powell regarding cost overruns related to the central bank's building renovation project.

A DOJ spokesperson made this announcement on Friday, October 2, 2026.

Attorney General Todd Blanche stated that he has not ruled out continuing to investigate the project's oversight and potentially taking action if evidence of wrongdoing is found.

The Fed's Inspector General concluded in a report earlier this week that there were no grounds for a criminal referral or administrative misconduct tied to the cost overruns, but noted lax oversight.

Powell has remained at the Fed as a governor since stepping down as chair in May, and his successor, Federal Reserve Chairman Kevin Warsh, announced on Thursday that he would hire an independent auditor to verify the accuracy and compliance of all project costs.