Justice Department won't reopen probe into former Fed chair Powell

The Fed's inspector general released a report on Wednesday concluding there were no grounds for a criminal referral or evidence of administrative misconduct tied to the project's increased costs. However, the report did highlight instances of lax oversight.

Following the inspector general's findings, Donald Trump, a vocal critic of Powell, renewed his calls for the former Fed chair's resignation. Powell stepped down as Fed chair in May but remains a governor at the central bank.

Kevin Warsh, Powell's successor as Fed chair, announced on Thursday that he would engage an independent auditor to verify the accuracy and compliance of all project costs. Blanche indicated to Bloomberg News that if this new review uncovers any evidence of criminal wrongdoing, the Justice Department could initiate an investigation.

During his final press conference as Fed chief in April, Powell had stated his intention to remain on the central bank's board until the investigation was fully concluded with transparency and finality. A spokesperson for the Fed declined to comment immediately on Blanche's statements.