A federal judge has rejected efforts by the Justice Department to revive two subpoenas it served to the Federal Reserve as part of its criminal investigation into Chairman Jerome Powell and the Fed’s building renovations.
The judge had quashed the subpoenas on the grounds they were pretextual and not based on evidence of a crime, CBS reported.
“The Government’s arguments do not come close to convincing the Court that a different outcome is warranted,” Chief Judge for the District of Columbia James Boasberg wrote in his ruling.
Powell revealed in January that the Federal Reserve had received grand jury subpoenas from the Justice Department as part of an ongoing criminal investigation into him that threatened a criminal indictment related to his testimony before the Senate Banking Committee in June 2025.
Powell, who has drawn President Donald Trump’s ire for declining to rapidly slash interest rates, said the investigation focused on his comments about a yearslong renovation project at the Federal Reserve’s office buildings. Trump has nominated Kevin Warsh to replace Powell in May. The probe has not resulted in any criminal charges.
Ruling Upset U.S. Attorney
In sealed proceedings, lawyers for the central bank asked Boasberg to quash the subpoenas. Boasberg granted the request and unsealed his decision, prompting U.S. Attorney Jeanine Pirro to accuse him of being an “activist judge” whose decision was “untethered to the law.”
The government is both appealing the ruling and filed a separate motion asking Boasberg to reconsider his decision.
After the judge blocked the subpoenas, Trump said that the DOJ should continue its investigation into Powell, possibly delaying further the confirmation of Powell’s intended successor, Kevin Warsh.
“He’s under investigation because he’s building a building for hundreds of billions of dollars more than it’s supposed to cost,” Trump said of Powell in the Oval Office at the time.
Sen. Thom Tillis, R-N.C., continues to vow that he would block Warsh’s nominaton as chair. Tillis has said he will not lift that block until the investigation of Powell is resolved.
Tillis said recently in a statement on X, “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.
