The US Justice Department has decided not to reopen a criminal investigation into former Federal Reserve chair Jerome Powell. The probe was related to cost overruns on the central bank's building renovation project. A Justice Department spokesperson confirmed the decision on Friday.
Attorney General Todd Blanche, speaking to Bloomberg News, stated that while the criminal investigation is closed, he hasn't ruled out looking into the project's oversight. Potential action could still be taken if evidence of wrongdoing surfaces.
The Fed's inspector general had previously concluded that there were no grounds for a criminal referral or evidence of administrative misconduct tied to the project's cost overruns. However, the report did highlight lax oversight, which prompted Donald Trump, a known critic of Powell, to renew his calls for Powell's resignation.
Powell stepped down as Fed chair in May but remains a governor at the Fed. His successor, Kevin Warsh, announced on Thursday that he would hire an independent auditor to review all project costs for accuracy and compliance.
Blanche reiterated to Bloomberg News that if this new review uncovers any evidence of criminal wrongdoing, the Justice Department could pursue an investigation.
Back in April, during his final press conference as Fed chair, Powell had stated he would not leave the central bank's board until the investigation was fully concluded with transparency and finality.
