Subpoenas issued to the Federal Reserve as part of a criminal investigation of Chair Jerome Powell have been blocked by a federal judge, a court filing showed Friday.
In what was called a scathing ruling, Federal Judge James Boasberg blocked subpoenas issued to the Federal Reserve as part of a criminal investigation of Powell, by the prosecutors in the office of U.S. Attorney for Washington, D.C., Jeanine Pirro.
“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” Boasberg wrote.
“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,” the judge 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,” Boasberg wrote in the ruling.
Prosecutor Plans an Appeal
In a press conference Friday afternoon, Pirro denounced Boasberg’s ruling.
“Jerome Powell is now bathed in immunity,” she said.
“This is wrong, and it is without legal authority,” Pirro said.
“This outrageous decision will be appealed by the Department of Justice,” Pirro said.
In February, the Fed said it would seek to quash the subpoenas.
In January, Powell revealed that he learned he was under investigation by Pirro’s office, ostensibly in connection with pricey renovations of the Federal Reserve headquarters, and his testimony to the Senate Banking Committee about that project, CNBC reported. Powell’s term as chair ends in May.
The ruling comes as Sen. Thom Tillis, R-N.C., has vowed to continue a blockage of President Donald Trump’s nominee to replace Powell, Kevin Warsh, as chair. Tillis has said he will not lift that block until the investigation of Powell is resolved.
Tillis, in a statement Friday on X said, “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.”
“We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment,” Tillis wrote.
