Judge Blocks Subpoenas Against Fed Chair Powell; DOJ to Appeal

A federal judge on Friday blocked subpoenas issued by the Justice Department as part of its criminal investigation into Federal Reserve Chair Jerome Powell’s handling of renovations of the central bank’s Washington headquarters.

U.S. Attorney for the District of Columbia Jeanine Pirro, an appointee of Republican President Donald Trump whose office is spearheading the investigation, promised to appeal Chief U.S. District Judge James Boasberg’s decision.

Powell, a frequent target of Trump’s ire, disclosed the investigation on Jan. 11, calling it a threat to the Fed’s political independence.

The Fed’s Board of Governors made a motion to quash the subpoenas, which sought information about the renovations of two historic buildings that have led to cost overruns as well as Powell’s July 2025 testimony before the Senate Banking Committee. The ongoing project, initially estimated to cost $1.9 billion, has cost $2.5 billion.

Powell has called the probe a pretext for Trump to pressure the Fed into cutting interest rates. The judge agreed, saying a “mountain of evidence” suggests the investigation was to pressure the Fed chair to lower rates or resign. 

“The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual,” Boasberg wrote.

The ruling for now will make it difficult for the Justice Department to proceed in its investigation of Powell. Prosecutors said they are examining whether Powell made false statements to Congress and committed fraud, according to court documents made public on Friday.

Boasberg concluded the subpoenas were issued for an improper purpose and as a result were not legally valid.

“The Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” the judge wrote.

“The Government might as well investigate him for mail fraud because someone once saw him send a letter,” Boasberg wrote.

Pirro told a news conference that the judge “has neutered the grand jury’s ability to investigate crime.”

“The American public is fed up with public monies that seem to go into a black hole, especially in D.C., where no one is held accountable,” Pirro said.

She called a grand jury subpoena “one of the age-old tools” used to investigate crimes that include “cost overruns,” and referred to Boasberg as an “activist judge.”

“As a result, Jerome Powell today is now bathed in immunity,” Pirro told reporters.

A Fed spokesperson declined to comment.

Friday’s developments mean Trump’s nomination of former Fed governor Kevin Warsh to succeed Powell as Fed chair remains in limbo. Powell’s leadership term is up in mid-May.

Sen. Thom Tillis, R-N.C., has vowed to use his spot on the Senate Banking Committee to block any Fed nominee while the investigation stays open, effectively freezing the Warsh confirmation process. 

Tillis on Friday said a Justice Department appeal of the ruling “will only delay the confirmation of Kevin Warsh as the next Fed Chair.”

Trump has heaped pressure on the central bank to cut interest rates and has lashed out at Powell for not doing so more quickly. 

Reuters contributed to this report

The post Judge Blocks Subpoenas Against Fed Chair Powell; DOJ to Appeal appeared first on The Daily Signal.