A federal judge has quashed Justice Department subpoenas targeting Federal Reserve Chair Jerome Powell, calling the probe an attempt to harass him into resigning. This ruling is a major blow to the Trump administration's ongoing efforts to pressure the independent central bank.
A federal judge delivered a significant setback to the Justice Department's investigation into Federal Reserve Chair Jerome Powell, quashing subpoenas issued in January. Judge Boasberg stated there was "abundant evidence" the subpoenas' primary purpose was to "harass and pressure Powell either to yield to the President or to resign." This unprecedented investigation, led by U.S. Attorney Jeanine Pirro, centers on alleged cost overruns in Fed building renovations, with the DOJ claiming "possible fraud and false statements" by Powell regarding amenities. The ruling is the latest development in the Trump administration's broader campaign to exert influence over the historically independent central bank. Pirro vehemently criticized the ruling, calling the judge an "activist" and vowing to appeal, stating it "neutered the grand jury’s ability to investigate crime." The ongoing probe has also created a political stalemate on Capitol Hill, with Republican Sen. Thom Tillis blocking the confirmation of Kevin Warsh, Trump's nominee for Fed Chair, until the investigation is dropped. Tillis asserted the ruling confirmed the investigation's "weak and frivolous" nature and has vowed to blockade all Federal Reserve nominees. Furthermore, a filing revealed Powell might remain on the Fed's governing board past his term as chair if the investigation continues, which would prevent President Trump from appointing a new governor. Judge Boasberg, an Obama appointee, noted the government declined to submit further evidence to him directly, leaving the court with "no credible reason to think that the Government is investigating suspicious facts as opposed to targeting a disfavored official."
