DOJ Rejects Jerome Powell Probe

What happened

The Justice Department said it will not reopen a criminal investigation into former Federal Reserve Chair Jerome Powell over cost overruns in the Fed’s headquarters renovation. Powell remains on the Federal Reserve Board as a governor after stepping down as chair in May. The Fed’s inspector general had found no grounds for a criminal referral and no administrative misconduct tied to the overruns, while still faulting serious management and oversight failures. Donald Trump again called for Powell’s resignation and threatened legal action if he stayed. Powell had said he would remain until the investigation ended with “transparency and finality.” New Fed Chair Kevin Warsh said he would hire an independent auditor. Attorney General Todd Blanche said future scrutiny remains possible if that audit finds criminal evidence.

How each side covered it

From the left

Coverage separated lax project oversight from criminal wrongdoing while noting Trump used the criticism to demand Powell’s resignation. The Guardian reported that the Fed inspector general found no grounds for a criminal referral or misconduct tied to the overruns, and also said the lax-oversight conclusion drew Trump’s resignation demand. Raw Story framed the DOJ decision as Trump’s own Justice Department abandoning his push to prosecute a frequent political target.

From the right

The renovation stayed framed as a costly management scandal hanging over Powell. Newsmax, quoting Larry Kudlow, cited “management failures and soaring costs” and also his argument that Powell’s rate record and the renovation controversy were reasons to leave the board. The Gateway Pundit emphasized that the DOJ will not revive its criminal investigation into Powell, while leaving open possible future action if evidence emerges.