The Department of Justice (DOJ) has concluded its criminal investigation into Federal Reserve Chair Jerome Powell, shifting the matter to the Fed’s inspector general. The probe had examined whether Powell provided false statements to Congress regarding cost overruns in the Federal Reserve’s headquarters renovation. Initially estimated at $1.9 billion, the renovation costs have grown to approximately $2.46 billion. Powell, during a Senate Banking Committee hearing, denied allegations of luxury inclusions, emphasizing there were no opulent additions like special elevators or roof terrace gardens.
Documents from the National Capital Planning Commission, however, suggested potential discrepancies, including plans to restore private dining rooms and extend a governors’ private elevator. Under U.S. law 18 U.S. Code § 1001, making false statements to Congress is a serious offense, yet Chief Judge James Boasberg’s decision to quash DOJ subpoenas has precluded further criminal proceedings unless new evidence emerges. The judge remarked on the lack of criminal evidence, refuting any notions of Powell’s alleged misconduct as politically motivated pressure.
Both Powell and former Treasury Secretary Janet Yellen have criticized the investigation, asserting that it threatened the Fed’s autonomy. Conversely, figures like Representative Anna Paulina Luna argue for accountability, claiming Powell misled Congress. The DOJ’s decision potentially eases the path for Kevin Warsh, nominated to succeed Powell, whose confirmation faced delays due to this investigation. Senator Thom Tillis warned that he would continue blocking Warsh’s confirmation unless the probe was resolved.
Moving forward, the Fed’s inspector general will review the project. Previous audits highlighted necessary improvements without finding fraudulent activity. As the DOJ remains vigilant for any facts warranting renewed criminal proceedings, the broader implications for the Fed’s independence and Powell’s legacy persist. More details on this development can be found on JURIST’s JURIST News.