Powell Cleared as DOJ Drops Probe

The US Department of Justice has formally closed its investigation into Federal Reserve Chair Jerome Powell. The probe was launched after former President Donald Trump alleged that Powell had overseen excessive cost overruns in the Fed’s headquarters renovation. DOJ officials said the inquiry found no evidence of criminal conduct or misuse of funds, effectively clearing Powell of the accusations. The move removes a political cloud that has hovered over the Fed’s leadership, allowing Powell to concentrate on monetary policy amid ongoing inflation concerns and market volatility. It also signals that the Justice Department is not pursuing politically‑charged cases without solid proof.

The decision safeguards the Fed’s independence and lets Powell focus on steering US monetary policy without distraction.

The closure underscores the separation between politics and central banking, reinforcing confidence that the Fed can operate free from partisan attacks. It also dampens speculation that legal battles could destabilise markets, reassuring investors that monetary policy will remain the primary driver of economic direction and that the US financial system remains resilient.