The Department of Justice says it will not reopen a criminal probe into former Federal Reserve Chair Jerome Powell, following an inspector general report that found no grounds for a criminal referral over a mismanaged headquarters renovation.
Key facts
- The DOJ confirmed it will not reopen a criminal probe into former Fed Chair Jerome Powell.
- The confirmation followed a Fed inspector general report on the matter.
- The inspector general report found no grounds for a criminal referral.
- The issue concerned a mismanaged headquarters renovation.
- The confirmation was reported on October 2, 2026, according to CNBC.
The Department of Justice has confirmed that it will not reopen a criminal investigation into former Federal Reserve Chair Jerome Powell, according to CNBC. The decision closes one chapter of scrutiny that had centered on the central bank’s handling of a headquarters renovation.
The DOJ’s confirmation came after a report from the Federal Reserve’s inspector general, which examined the matter. According to CNBC, that report said there were no grounds for a criminal referral over the renovation.
At the heart of the inquiry was what the inspector general described as a mismanaged headquarters renovation. The review did not produce findings that would support a criminal case, which in turn informed the Justice Department’s decision not to pursue the matter further.
The confirmation, reported by CNBC on October 2, 2026, signals an end to the prospect of federal prosecution tied to the renovation. No further legal action against Powell in connection with the project is being pursued by the DOJ.
The available information is limited to the Justice Department’s confirmation and the findings of the inspector general’s report. The sources do not detail the scope, cost, or specific issues raised during the renovation beyond the characterization of it as mismanaged.
Why it matters
The Federal Reserve's independence and the conduct of its leadership are closely watched by markets and the public, so questions about a former chair's actions carry significant weight. The decision not to reopen a criminal probe removes a source of legal uncertainty surrounding one of the country's most powerful economic institutions.
Frequently asked questions
Will the DOJ reopen a criminal investigation into Jerome Powell?
No. According to CNBC, the Department of Justice confirmed it will not reopen a criminal probe into former Fed Chair Jerome Powell.
What prompted the DOJ's confirmation?
The confirmation came after the Federal Reserve inspector general's report, which said there were no grounds for a criminal referral over the mismanaged headquarters renovation.
What was the investigation about?
The matter concerned a mismanaged headquarters renovation at the Federal Reserve, according to CNBC.