Attorney General Todd Blanche publicly closed the door on prosecuting former Fed Chair Jerome Powell over Fed building renovations, telling Bloomberg “We’re not reopening a criminal investigation.” The OIG found no criminal wrongdoing. Trump】 wanted him forced to resign and sued at highest level.
Donald Trump wanted his Attorney General to prosecute former Federal Reserve Chair Jerome Powell. He wanted him forced to resign, sued at the highest level, and criminally charged.
Instead, on Friday, his own AG went on Bloomberg News and did the one thing Trump did not want him to do. He publicly closed the door.
“We’re NOT reopening a criminal investigation into him.”
With that one sentence, Attorney General Todd Blanche forgot to follow Trump’s script — and created a massive break inside the Justice Department.
What Trump Wanted: Force Powell Out
For months, President Trump has launched an unprecedented assault on the Federal Reserve’s independence because the Fed won’t cut interest rates fast enough for him.
His target has been former Fed Chair Jerome Powell, whom Trump has nicknamed “Too Late Powell.”
The weapon Trump chose was not monetary policy. It was a building renovation.
The Federal Reserve’s Office of Inspector General (OIG) released a report on the costly renovation of the Fed’s headquarters — two buildings in Washington, D.C. The report found poor management and egregious cost overruns, billions of dollars over budget.
But — and this is crucial — the watchdog found NO criminal wrongdoing.
Trump didn’t care. This week he posted on Truth Social:
“At a minimum, ‘Too Late’ Powell should be forced to resign from the Board. He can’t manage a Building, and he certainly shouldn’t be allowed to manage his High Interest Rate Policy. If he doesn’t resign, he should be sued, at the highest level, by the United States Government.”
And then he ordered Attorney General Todd Blanche to review the report and threatened legal action. Trump said he asked Blanche to “study the report, and make a determination as to what to do.”
The plan was clear: Use the renovation scandal as leverage to force Powell to resign and replace him with a loyalist who will cut rates.
What AG Blanche Actually Did: Forgets The Script
Trump expected his AG to do what he always does — say “we are investigating” and keep Powell under a cloud for months.
But on Friday, October 2nd, in an exclusive interview with Bloomberg News, AG Todd Blanche did the opposite.
He told Bloomberg, and we quote directly:
“We’re not reopening a criminal investigation into him.”
Reuters confirmed it within minutes with this headline: “The US Justice Department is not reopening a criminal probe into former Federal Reserve Chair Jerome Powell for cost overruns related to the central bank’s building renovation project.”
Blanche publicly closed the door. He forgot to follow Trump’s script.
Legal analysts at MeidasTouch are calling it exactly that — “Blanche FAILS to follow Trump Script and Announces No Criminal Investigation of Federal Reserve.” Host Popok reports Blanche forgot the script and it doesn’t sit well with Trump.
The Fine Print: Is It Totally Over?
Blanche did try to leave himself a little wiggle room.
According to Reuters, Blanche did not rule out continuing to look into the project’s oversight and potentially take action if evidence of wrongdoing came to light.
Bloomberg also reported he said his office intends to hold Powell accountable in other ways.
But the headline is final and devastating for Trump’s plan: No criminal case. No reopening. The watchdog cleared Powell of criminal wrongdoing, and the AG agrees.
This is the second time this week Trump’s plan to punish Powell has failed. First the Inspector General said no crime. Now his own Attorney General says no crime.
And remember — Powell’s term as a Board member ends on January 31, 2028. Trump wanted him gone now. Blanche’s statement essentially shuts the door on forcing him out this year.
Why Trump Is Furious: This Is About Control of The Fed
Why does this matter so much to Trump? Because this is not about buildings. This is about control of the Federal Reserve.
In his second term, Trump has demanded the Fed cut rates to spur economic activity ahead of the 2026 midterms. Powell has resisted, citing inflation concerns.
Trump has tried to use this renovation scandal as a pressure campaign — criminal prosecution, lawsuit, forced resignation — to install a loyalist who will do what he wants.
If Powell stays until 2028, Trump cannot fully control the Fed. That’s why he wanted a criminal prosecution.
Blanche just took away that leverage. Publicly. On Bloomberg.
Sources close to the White House say Trump was blindsided by Blanche going public so quickly and so definitively. He expected a long, vague investigation. He got a clear NO.
Fact Check Summary For Your Video:
FACT: OIG report found poor management but NO criminal wrongdoing in Fed headquarters renovation.
FACT: Trump demanded Powell be forced to resign and be sued at the highest level by the United States Government.
FACT: On Wednesday, Trump ordered AG Todd Blanche to study the OIG report and make a determination.
FACT: On Friday, October 2, 2026, Blanche told Bloomberg News: “We’re not reopening a criminal investigation into him.”
FACT: Reuters confirmed DOJ is not reopening a criminal probe into Powell.
FACT: Powell’s term ends January 31, 2028 — Blanche’s decision means he likely stays.
What Do You Think?
Is Todd Blanche finally showing some independence from Donald Trump? Or did he just make a massive political mistake that will cost him his job?
Should Jay Powell be prosecuted over building cost overruns, or is Trump weaponizing the DOJ to control the Federal Reserve and force interest rate cuts?
Comment below. Type “NO CHARGES” if you think Blanche did the right thing, or “PROSECUTE POWELL” if you think Trump is right.
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Sources: Reuters – “Blanche says DOJ is not reopening criminal probe into Fed’s Powell” Oct 2, 2026; Bloomberg News exclusive interview with AG Todd Blanche; Dawn News – “US AG won’t reopen criminal case against ex-Fed chair”; Federal Reserve OIG report on building renovations; Donald Trump】 Truth Social post on Powell resignation demand.