Justice Department Closes Powell Investigation Amid Concerns Over Central Bank Independence

The Justice Department has officially closed its investigation into former Federal Reserve Chair Jerome Powell over cost overruns tied to the central bank's headquarters renovation project.

The controversy began with allegations that Powell misled lawmakers during congressional testimony regarding the soaring price tags of the project, which ballooned from a routine capital improvement project to a multi-billion-dollar endeavor.

Federal prosecutors initially launched an inquiry and issued subpoenas, but struggled to find evidence of intentional deception or criminal misconduct, instead uncovering standard bureaucratic headaches and historic preservation mandates that drove up costs.

The Justice Department has ruled out reopening the case, citing a lack of legal footing and the risk of setting a precedent for turning policy disagreements into criminal indictments against civil servants and independent agency heads.