United States Department of Justice (DOJ): "No Criminal Investigation into Former Federal Reserve System (Fed) Chair Powell to Resume"

[Financial News]  

The United States Department of Justice (DOJ) has decided not to resume its criminal investigation into former Fed Chair Jerome Hayden Powell over budget overruns related to a Fed headquarters renovation project, CNBC reported on July 2 (local time).
According to CNBC, Attorney General Todd Blanche made the announcement in an interview with Bloomberg that day, and a DOJ spokesperson subsequently confirmed it.
Blanche nevertheless left open the possibility that an investigation could follow if an independent inquiry into the renovation project uncovers evidence of criminal wrongdoing.
The Fed inspector general had previously concluded that there were serious management and oversight shortcomings within the institution, but said it was difficult to substantiate allegations of federal-law violations serious enough to warrant referring the matter to the attorney general.
President Donald Trump, however, strongly criticized the Fed's own inspector general's conclusion. On June 30, Trump wrote on his social media platform Truth Social that Powell should be forced to step down at least from his position as a member of the Fed Board.
Earlier, amid Trump's repeated criticism, the DOJ launched an investigation into the Fed renovation project in January. It obtained a grand-jury warrant to secure relevant materials. In March, however, a federal court voided the warrant, ruling that it had been issued for an improper purpose and that prosecutors had failed to present evidence proving criminal allegations against Powell. The DOJ objected to the ruling but ended the investigation instead of appealing.
Powell handed the Fed chairmanship to Kevin Warsh in May but remains a member of the Fed Board. His term as a Fed governor runs through January 31, 2028.

[email protected] Song Kyung-jae Reporter