Justice Department Ends Probe of Fed Chair Powell as White House Pushes Inspector General Review

The Justice Department has ended its probe of Federal Reserve Chair Jerome Powell concerning alleged cost overruns on Federal Reserve building renovations. This decision shifts direct federal law enforcement scrutiny away from the central bank's spending practices.

The White House quickly responded by emphasizing the need for continued transparency and accountability. White House spokesman Kush Desai stated that American taxpayers deserve answers on the Fed's fiscal mismanagement. He added that the Office of the Inspector General, an independent internal oversight body within federal agencies, is best suited to investigate the matter thoroughly.

This latest focus on the Fed's finances continues a period of intense public and political scrutiny regarding its operations. Former President Trump previously claimed the Fed building renovations will cost $3.1 billion. This figure significantly exceeds the Federal Reserve's own internal estimate of $2.5 billion for the projects.

The conclusion of the Justice Department's probe means a criminal investigation will not proceed at this time. Instead, an Inspector General review will now examine the renovation costs and management within the Federal Reserve. These internal reviews typically focus on compliance with spending rules, efficiency, and adherence to established financial protocols.

This shift in investigative authority reorients the immediate pressure from a potential criminal inquiry to an internal audit process. Such a move underscores the persistent White House interest in the central bank's operational independence and leadership, a long-standing point of contention. Discussions around the Federal Reserve's autonomy, particularly concerning its monetary policy decisions and administrative oversight, have been a recurring theme in recent political discourse.

The coming months will feature the findings of the Inspector General's review. These findings will offer clarity on the renovation projects and could inform future discussions regarding the Federal Reserve's fiscal transparency and governance as new leadership appointments approach.