<p>Attorney General Todd Blanche stated on October 2, 2026, that the Justice Department will not reopen its criminal investigation into former Federal Reserve Chairman Jerome Powell. This decision follows the release of an internal watchdog report that found no evidence of criminal wrongdoing.</p>
<p>“We’re not reopening a criminal investigation into him,” Blanche told Bloomberg in an interview, indicating that prosecutors will not revisit the investigation related to the Federal Reserve’s multibillion-dollar headquarters renovation at this time.</p>
<p>Blanche expressed satisfaction with the findings of the central bank’s inspector general, which examined the approximately $2.4 billion renovation project. The report identified significant shortcomings in the Fed’s management and oversight of the project but did not find evidence warranting a criminal referral or administrative misconduct.</p>
<p>However, the attorney general noted that future action could be possible if new evidence arises. The Federal Reserve has announced plans to engage an independent auditor to review the construction costs, and Blanche indicated that the DOJ could investigate if this review uncovers any wrongdoing.</p>
<p>“I expect there will be an auditing process,” Blanche said. “If they learn anything that rises to any kind of criminal misconduct, you better believe we’re going to investigate that.”</p>
<p>President Donald Trump and Powell had previously clashed over the management of the renovations and Powell’s decisions regarding interest rates. Trump criticized Powell for the project’s escalating costs, which he claimed exceeded initial estimates by over $1 billion.</p>
<p>Powell announced in January 2026 that the DOJ was investigating him following allegations of lying during a Senate testimony in 2025 regarding the renovations. The inquiry was later dropped after it affected the confirmation of Kevin Warsh, Trump’s nominee to lead the central bank.</p>
<p>The possibility of reopening the investigation was raised after the inspector general released its findings. Trump stated that he had asked Blanche to review the report and determine the appropriate course of action regarding the cost overruns, suggesting that Powell should resign from the Fed. Powell’s term as chairman ended on May 15, 2026, while his term as a board member continues until 2028.</p>