Federal Judge Blocks DOJ Subpoenas in Fed Chair Powell Investigation

A federal judge has thrown out Justice Department subpoenas targeting Federal Reserve Chair Jerome Powell, calling the investigation lacking in evidence and designed to pressure Powell. The ruling comes as the probe has stalled Senate confirmation of Trump's Fed nominee Kevin Warsh.

A federal judge delivered a crushing defeat to the Justice Department on Friday, throwing out subpoenas targeting Federal Reserve Chair Jerome Powell and condemning the investigation as baseless harassment.

The probe centers on Powell’s congressional testimony last June regarding a $2.5 billion Federal Reserve building renovation project. The controversy has created political ripple effects in Washington, stalling Senate confirmation proceedings for Kevin Warsh, whom President Trump has nominated to succeed Powell when his tenure expires on May 15.

Judge James Boasberg issued a scathing rebuke of the government’s case, stating they have “produced essentially zero evidence to suspect Chair Powell of a crime.” The judge characterized the justifications for the subpoenas as so “thin and unsubstantiated” that they appeared designed solely to pressure Powell into cutting interest rates, which Trump has repeatedly advocated.

“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” Boasberg wrote in his decision.

The court’s decision prevents U.S. Attorney Jeanine Pirro, who authorized the subpoenas, from accessing Federal Reserve documents related to the building renovation. Pirro responded angrily to the ruling during a press conference, announcing plans to appeal.

Pirro criticized what she termed an “activist judge” for quashing the subpoenas, claiming the decision has “neutered the grand jury’s ability to investigate crime” and leaves Powell “bathed in immunity.”

“This is wrong and it is without legal authority,” she declared.

The investigation became public knowledge when Powell took the unusual step of announcing it in a video statement on January 11. This revelation prompted Senator Thom Tillis, a North Carolina Republican who serves on the Banking Committee, to halt consideration of Warsh’s nomination until the probe is abandoned.

Following Friday’s ruling, Tillis said the court decision validated his concerns about the investigation’s merit, calling it “weak and frivolous.” The senator has maintained his position of blocking all Federal Reserve nominations, including Warsh’s appointment as the next Fed chair, until authorities drop their criminal investigation of Powell.

“We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment and move on,” Tillis stated Friday. “Appealing the ruling will only delay the confirmation of Kevin Warsh as the next Fed Chair.”