DOJ drops criminal investigation of Federal Reserve Chair Jerome Powell

The Department of Justice closes a criminal investigation of Federal Reserve Chair Jerome Powell, according to multiple sources. The probe had examined the circumstances of federally funded renovations to Federal Reserve buildings, following allegations that Powell had misused government funds or improperly approved construction spending. Powell had cited the investigation as the reason he intends to stay on the Fed''s Board of Governors even after his chairmanship ends. The DOJ does not publicly announce the closure of the investigation. Details emerge through reporting shortly after the announcement. The probe had been a source of intense speculation about whether the Trump administration was using the Justice Department to pressure Powell into cutting interest rates — a policy outcome Trump has publicly demanded. At his April 29 press conference, Powell says he is "waiting for the investigation to be well and truly over with finality and transparency" before deciding how long to remain as a governor. He cites "unprecedented legal attacks on the Fed" by the Trump administration, saying they "are ongoing." The closing of the criminal probe does not resolve other executive branch actions challenging the Fed''s independence.