The DOJ's spokesperson confirmed that the investigation into Jerome Powell will not be reopened, following an independent audit that found no reasonable grounds for criminal wrongdoing. Although the audit criticized the Federal Reserve for management failures that led to the renovation's excessive costs, it did not provide evidence of a crime.
This decision comes after a previous investigation initiated in January, which included grand jury subpoenas that were later quashed by a federal judge. The judge ruled that the subpoenas were issued improperly and that there was insufficient evidence against Powell. Despite the DOJ's closure of the investigation, they did not rule out future actions if new evidence arises from the audit.
The situation has drawn public criticism from former President Donald Trump, who has called for Powell's resignation, reflecting ongoing tensions regarding the Fed's interest rate policies. Powell remains on the Fed's Board of Governors until January 31, 2028, and the new Fed Chairman, Kevin Warsh, has indicated plans to enhance oversight of the renovation project