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US Attorney General Halts Criminal Probe into Ex-Fed Chair Powell Over $2.4 Billion Renovation
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Moneycontrol•03-10-2026, 01:24
US Attorney General Halts Criminal Probe into Ex-Fed Chair Powell Over $2.4 Billion Renovation
- •US Attorney General Todd Blanche has decided against reopening a criminal investigation into former Federal Reserve chair Jerome Powell regarding cost overruns for the central bank's headquarters renovation.
- •The decision follows a Federal Reserve internal watchdog report that found no evidence of criminal wrongdoing in the $2.4 billion project, despite identifying management shortcomings.
- •Former President Donald Trump had called for Powell's resignation and directed Blanche to review the report, linking the probe to an escalating dispute over interest rates.
- •The renovation's estimated cost surged from $1.3 billion in February 2020 to $2.4 billion by December 2024, attributed to project management and cost control issues.
- •While the criminal probe is closed, Blanche indicated the possibility of further scrutiny into how the renovation project was supervised.
Key Questions Answered
The US Attorney General ruled out reopening the criminal investigation after the Federal Reserve's internal watchdog found no evidence of criminal wrongdoing in the $2.4 billion headquarters renovation project, despite identifying management shortcomings and cost overruns.
The watchdog's findings attributed the drastic cost increase from $1.3 billion in February 2020 to $2.4 billion by December 2024 to shortcomings in project management and cost controls.
Yes, Powell's term as Fed chair ended in May, but he chose to remain on the central bank's Board of Governors until the investigation was conclusively resolved and its findings made transparent.
