DOJ not reopening criminal probe into Fed's Powell, Blanche says

The U.S. Justice Department will not reopen a criminal investigation into Federal Reserve Chair Jerome Powell regarding cost overruns on the central bank's $2.5 billion building renovation project, Attorney General Todd Blanche told Bloomberg News on Friday. Blanche stated that while the current probe is closed, he would not hesitate to restart a criminal investigation should new evidence of wrongdoing come to light.

Previously, U.S. Attorney Jeanine Pirro had directed her office to end the investigation, indicating that the Federal Reserve's Inspector General, Michael Horowitz, would instead examine the matter. Pirro expressed confidence that Horowitz's inquiry would provide a comprehensive report to resolve questions surrounding the project.

The investigation, which began on January 11, had faced significant legal challenges. In March, Chief U.S. District Judge James Boasberg quashed subpoenas issued by Pirro's office, ruling that the government's primary purpose appeared to be to "harass and pressure" Powell. Boasberg noted a "mountain of evidence" suggesting the subpoenas were intended to push Powell into lowering interest rates or resigning.

Powell himself had criticized the investigation, framing it within the context of "administration's threats and ongoing pressure" against him and the Fed. President Donald Trump had previously criticized the renovation project's cost, though he denied prior knowledge of the DOJ probe.