A federal judge has blocked subpoenas issued to Federal Reserve Chair Jerome Powell by the Trump administration. Judge James Boasberg found the subpoenas, related to a probe into Fed building renovations, were issued for an improper purpose, citing evidence they aimed to pressure Powell on interest rates. U.S. Attorney Jeanine Pirro criticized the ruling, arguing it untethered the law. This represents a significant setback for the administration amid ongoing tensions between Powell and President Trump over Fed spending and monetary policy.
A U.S. Federal judge has blocked subpoenas sent to Federal Reserve Chair Jerome Powell by the Trump administration. According to the Fed Chair, the subpoenas were related to his testimony before the Senate about the renovation of Federal Reserve office buildings.
Judge James Boasberg, the chief judge on the U.S. District Court for Washington, D.C., wrote in a court filing that evidence suggests the subpoenas aimed to pressure the Chair on interest rates. He stated the Government produced essentially zero evidence to suspect Powell of a crime.
“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” Boasberg wrote. The Court therefore found the subpoenas were issued for an improper purpose and would quash them.
U.S. Attorney for the District of Columbia Jeanine Pirro said the judge’s order wrongly exonerated Powell. “No one is above the law, but for the first time, a judge’s ruling that a grand jury subpoena — on its face legal in all regards — can be ignored, because the judge thinks the subject is beyond reproach,” she stated.
Fed Chair Jerome Powell has faced pressure in the final months of his tenure, set to expire in May. He and Trump have been at odds over the Fed’s spending and reluctance to lower interest rates. This decision to block the subpoenas is a big loss to the U.S. President and his administration.
