A federal judge has blocked grand jury subpoenas issued to Federal Reserve Chair Jerome Powell as part of a criminal investigation, ruling that the Justice Department produced “essentially zero evidence” to support the probe. The decision by U.S. District Judge James Boasberg found that the subpoenas were issued for an improper purpose, aiming to pressure Powell to lower interest rates or resign.
In a ruling unsealed Friday, Judge James Boasberg stated that “abundant evidence” indicated the subpoenas’ “dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign.” The judge further noted that the government offered “essentially zero evidence to suspect Chair Powell of a crime,” concluding that the justifications provided were “thin and unsubstantiated” and likely pretextual.
The investigation, led by U.S. Attorney Jeanine Pirro, reportedly centered on Powell’s testimony to the Senate Banking Committee regarding the Federal Reserve’s multi-billion-dollar headquarters renovation project. However, the judge found that the evidence pointed towards a motivation to force Powell to align with President Donald Trump’s demands for lower interest rates.
U.S. Attorney Jeanine Pirro immediately denounced the ruling as “outrageous” and announced that the Department of Justice would appeal the decision. Pirro asserted that “no one is above the law” and criticized the judge’s decision as being “untethered to the law.”
The ruling and the subsequent appeal are likely to keep Powell in his position as Fed chair until his term expires in May. This situation has significant implications for the confirmation of Kevin Warsh, President Trump’s nominee to succeed Powell. Senator Thom Tillis, R-N.C., has vowed to block Warsh’s confirmation until the federal investigation concludes, potentially deadlocking the Senate Banking Committee. The ongoing political pressure on the Fed and its interest rate policy, particularly in light of global events like the Iran war impacting energy costs, remains a central theme.