US Justice Department will not reopen probe into former Fed chair Powell

The US Department of Justice announced on Friday that it will not reopen a criminal investigation into former Federal Reserve chair Jerome Powell concerning cost overruns tied to the central bank's building renovation project.

Attorney General Todd Blanche told Bloomberg News, which first reported the decision, that he has not ruled out continuing to monitor the project's oversight and potentially taking action should evidence of wrongdoing surface later.

The Federal Reserve's inspector general said on Wednesday it found no basis for a criminal referral and no evidence of administrative misconduct related to the cost overruns. However, its finding that oversight of the project had been lax prompted a renewed call from Donald Trump for Powell to resign. Trump has repeatedly criticized Powell across both of his presidencies.

Powell stepped down as Fed chair in May but has remained on the central bank's board of governors.

His successor as Fed chair, Kevin Warsh, said on Thursday that he would bring in an independent auditor to verify the accuracy of and compliance around all costs associated with the renovation project.

Blanche told Bloomberg News that if this new review uncovers evidence of criminal conduct, the Justice Department could open an investigation.

At his final press conference as Fed chair in April, Powell said he would not leave the central bank's board until the investigation was fully and transparently concluded. A Fed spokesperson did not immediately respond to Blanche's comments.