Justice Department Ends Investigation into Fed Chairman Powell

WASHINGTON — The Justice Department has decided to close its criminal inquiry into Federal Reserve Chairman Jerome Powell concerning costly renovations at the Fed’s headquarters in Washington, D.C.

U.S. Attorney Jeanine Pirro made the announcement on Friday, stating that the Fed’s inspector general will now look into significant cost overruns tied to the construction that taxpayers are covering.

“The inspector general has the power to ensure accountability for the American taxpayer,” Pirro remarked. “I’m eager to see a thorough report soon, and I believe its conclusions will clarify the issues that prompted our subpoena.”

He went on to say that the law enforcement agencies would shut down their investigation while the inspector general conducts their review but warned that the criminal investigation could be reopened if needed.

This investigation began after Powell, in his testimony to the Senate Banking Committee, denied claims that the $2.5 billion renovation project included extravagances.

In January, Pirro’s office had issued a subpoena regarding Powell’s earlier remarks, although these were blocked by a federal judge last month.

The probe was instigated when Powell refuted assertions that lavish upgrades had contributed to overspending on the project.

In his testimony, Powell emphasized that the renovations did not include any luxurious features, saying there was no VIP dining area, no extravagant new marble installations, or special elevators. He noted, “There are no new plumbing fixtures, no beehives, no rooftop terrace gardens.”

Powell also pointed out that the potential for criminal charges stemmed from the Fed’s decision to set interest rates based on its judgment of public needs rather than yielding to presidential pressure.