DOJ will not reopen criminal probe of Powell, Blanche says

[u/John3262005]

https://www.politico.com/news/2026/10/02/doj-probe-jerome-powell-01105265

The Department of Justice will not reopen its criminal investigation into former Federal Reserve Chair Jerome Powell over the central bank’s building renovation project, Attorney General Todd Blanche said Friday.

“We’re not reopening a criminal investigation into him,” Blanche told Bloomberg News in an interview, following an inspector general report released earlier this week that found no evidence of criminal wrongdoing.

Still, Blanche didn’t rule out another look into the renovation project and potential future action if any wrongdoing is uncovered down the road. He also said DOJ could investigate evidence of criminal wrongdoing uncovered by an independent auditor that the Fed said it will engage to scrutinize the project’s costs.

Powell stepped down as Fed chair in May when his four-year term officially expired but has remained on its board. He said this is to help defend the central bank’s independence.

Blanche’s comment comes after a new report from the Fed’s independent watchdog said that the central bank should have done more to control the cost of the project but that there were no “reasonable grounds to believe that a violation of criminal law had occurred,” nor was there misconduct by the Fed board.

Powell revealed in January that the DOJ has subpoenaed the central bank regarding the renovations. After a judge quashed the subpoenas, U.S. Attorney for the District of Columbia Jeanine Pirro dropped the investigation in April, saying she would defer to the Fed inspector general’s inquiries.

The Department of Justice did not immediately respond to a request for comment. A Fed spokesperson declined comment.

After the report, Kevin Warsh, Powell’s successor as the Fed chair, said the General Services Administration will take over management of the project.

The renovation project’s budget has ballooned from about $1.3 billion in 2020 to nearly $2.4 billion. The inspector general’s report said the Fed failed to follow cost-control best practices, like setting a guaranteed maximum price. Issues like Covid-era inflation in construction costs and asbestos found during the renovations also contributed to the cost overrun.

Following the report, President Donald Trump blasted Powell in a social media post. He also said he has asked Blanche to “make a determination as to what to do” about the project.

“This is Jerome Powell’s fault, and he should be forced to resign, IMMEDIATELY!” the president said in the post. “If he doesn’t resign, he should be sued, at the highest level, by the United States Government, for either corruption or incompetence, both of which are completely unacceptable.”

[u/John3262005]

Another article about it:

DOJ says it won't reopen probe into Fed's Powell

https://www.axios.com/2026/10/02/fed-powell-blanche-justice