DOJ says it will not reopen criminal probe into former Fed Chair Powell

• DOJ spokesperson confirmed no criminal probe will be reopened, though did not rule out future action if an independent audit uncovers evidence of criminal wrongdoing
• The Fed inspector general faulted the central bank for management failures that contributed to the headquarters project's soaring costs
• President Trump criticized the decision and called for Powell to be 'forced to resign' from the Fed's Board of Governors, claiming he 'can't manage a Building'

Summary: DOJ Will Not Reopen Criminal Probe Into Former Fed Chair Powell

Key Facts

The Department of Justice has confirmed it will not reopen a criminal investigation into former Federal Reserve Chair Jerome Powell regarding the Federal Reserve's multibillion-dollar headquarters renovation project that significantly exceeded budget. DOJ spokesperson Blanche made the announcement Friday but did not completely rule out future action, stating an independent audit could trigger an investigation if criminal wrongdoing is uncovered.

Background and Findings

The Fed's inspector general recently concluded there was insufficient evidence of federal crimes to warrant a referral to the attorney general. However, the watchdog did cite the central bank for major management and oversight failures that contributed to the project's escalating costs.

Political Response

President Trump sharply criticized the decision in a Wednesday statement, calling for Powell to be "forced to resign" from the Federal Reserve's Board of Governors. Trump accused Powell of mismanaging the building project and questioned his ability to manage interest rate policy, adding a parenthetical criticism suggesting Powell only maintains "high interest rates" during Trump's presidency.

Market Implications

While this development removes immediate criminal risk for Powell, the political pressure and criticism from the President could create uncertainty around Federal Reserve independence and monetary policy decision-making. The situation highlights ongoing tensions between the executive branch and the central bank, potentially affecting market confidence in Fed autonomy.

The story remains developing, with the possibility of future action pending audit results.