According to CNBC, the DOJ has closed the door on reviving its criminal investigation into Powell tied to the Fed's multibillion-dollar headquarters renovation. The Fed's inspector general found no basis for a criminal referral, though it faulted serious oversight failures as costs spiraled beyond budget.
The legal threat to Powell disappears, but the political one intensifies. Powell may have stepped down as Fed chair, yet he remains on the Fed board through January 2028. President Trump continues pressing him to resign. This story shifts from a corruption case to another battleground over who controls the central bank.
The DOJ left a door cracked open: it did not rule out other action if an independent audit surfaces new findings. The renovation project remains a potential weapon even with Powell personally off the criminal hook.
Bad management and runaway costs are not prosecutable crimes. The DOJ just said so. But in Washington, that distinction rarely stops a pressure campaign. Powell clears the courtroom. He still has to survive the message war around a building that cost far more than it should have.
Filed to the Politics desk · 4 days ago