DC judge blocks DOJ’s subpoenas of Federal Reserve
A federal judge on Friday rejected two subpoenas that the Department of Justice issued to the Federal Reserve, handing the Trump administration a setback as it attempts to investigate Fed chair Jerome Powell.
The DOJ in January launched a criminal probe into Powell’s congressional testimony about a major renovation project at the Fed. It served the agency with two subpoenas, one for that testimony, as well as another seeking records about the renovations.
The Board then moved to quash them.
U.S. District Judge James E. Boasberg of Washington, D.C. said in his decision that prosecutors did not issue the subpoenas for a proper purpose.
“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. “On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President. The Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts.”
At a news conference, U.S. Attorney for the District of Columbia Jeanine Pirro said the DOJ will appeal the ruling.
“This is wrong, and it is without legal authority,” Pirro said.
Lawmakers from both sides of the aisle have spoken out against the investigation into the Fed amid concerns that moves from the administration could threaten its independence.
Sen. Thom Tillis, R-N.C., who said he will block Kevin Warsh’s nomination to replace Powell as Fed chair during the investigation, responded on X to Boasberg’s decision. Powell’s term ends in May.
“This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence,” Tillis said. “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.”
The Trump administration’s probe of Powell centers on testimony he gave to Congress about a multi-year renovation of the Federal Reserve’s headquarters.
The project drew scrutiny from the Trump administration, with Office of Management and Budget chair Russell Vought accusing Powell of overseeing what he called “ostentatious” renovation that could be “violating the law.”
In a January video statement, Powell said the DOJ’s investigation is really about more than “just building upgrades.”
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said. “This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role. Those are pretexts. The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”
Ella Rae Greene, Editor In Chief
