Justice Department Drops Powell Probe, But Oversight Concerns Remain

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

A DOJ spokesperson made this announcement on Friday, citing that there is no evidence of wrongdoing. However, Attorney General Todd Blanche has not ruled out continuing to look into the project's oversight and potentially taking action if new evidence comes to light.

The Fed's Inspector General had previously found no grounds for a criminal referral or evidence of administrative misconduct tied to the project cost overruns, but did conclude that there was lax oversight. This conclusion drew criticism from President Donald Trump, who called for Powell's resignation.

Powell has remained at the Fed as a governor since stepping down as chair in May. His successor, Fed Chairman Kevin Warsh, has announced plans to hire an independent auditor to verify the accuracy and compliance of all project costs.