The Department of Justice has decided not to reopen the criminal investigation into former Federal Reserve Chair Jerome Powell concerning the costly renovation of the Fed’s headquarters. DOJ spokespersons confirmed that, despite major cost overruns and oversight failures highlighted in an independent audit, there is no sufficient evidence to pursue criminal charges against Powell. Attorney General Todd Blanche indicated that while the current probe is closed, the department is open to further action if new evidence emerges from ongoing oversight.

The investigation began in January 2026 following concerns about the renovation project’s escalating budget, which ultimately more than doubled from initial estimates. Early in the year, grand jury subpoenas aimed at uncovering wrongdoing were quashed by a federal judge, who ruled the subpoenas were issued for improper reasons and noted a lack of evidence implicating Powell in criminal conduct. As a result, the DOJ stepped back without pursuing an appeal and closed the matter.

President Donald Trump sharply criticized the DOJ’s decision, demanding Powell’s resignation from the Federal Reserve Board, which Powell currently still serves on with a term lasting until January 2028. Trump’s discontent stems from ongoing disagreements with Powell’s policies, particularly surrounding interest rates. Kevin Warsh, who replaced Powell as Fed Chair in May 2026, has emphasized plans to enhance project oversight and brought in independent auditors to review the renovation.

The Fed inspector general’s report acknowledged severe mismanagement but stopped short of recommending legal action against Powell. The renovation controversy adds to the broader scrutiny Powell faces as he continues serving on the Fed Board amid political pressures. Meanwhile, the DOJ remains vigilant for any additional evidence but has officially closed the criminal case for now.