A federal judge in Washington delivered a major blow to the Justice Department on Friday, blocking subpoenas directed at the Federal Reserve’s Board of Governors. In a newly unsealed opinion, U.S. District Judge James Boasberg ruled that the government had failed to provide any substantial proof to justify its criminal investigation into Federal Reserve Chair Jerome Powell.
The ruling was blunt, with Boasberg stating that the government “produced essentially zero evidence” to support its claims. Instead, the judge suggested the investigation appeared to be a tactical move to undermine the Fed’s leadership.
“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.
The Justice Department’s investigation originally focused on Powell’s congressional testimony regarding cost overruns during a multi-billion-dollar renovation of the Federal Reserve’s headquarters. However, Boasberg characterized the DOJ’s legal justifications as “pretextual” and “thin,” arguing that the true intent seemed to be forcing Powell to lower interest rates or step down.
Acting U.S. Attorney Jeanine Pirro immediately pushed back against the decision. During a press conference in Washington, Pirro labeled Boasberg an “activist judge” and confirmed that her office intends to appeal the ruling.
Powell has consistently maintained that the probe is a politically motivated attempt to compromise the Federal Reserve’s traditional independence. In a video message released in January, he rebuked the investigation as an effort to sway the central bank’s interest rate policy.
The court’s decision was met with approval from several lawmakers on Capitol Hill who have long voiced concerns over executive overreach. Senator Thom Tillis, a North Carolina Republican and member of the Senate Banking Committee, warned the U.S. Attorney’s Office against continuing the legal battle.
“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 posted on X Friday afternoon. He added that the DOJ should “save itself further embarrassment and move on.”
The ruling highlights an ongoing tension between the executive branch and the Federal Reserve, an institution designed to operate free from political interference. For now, the block on the subpoenas prevents the Justice Department from accessing the Board of Governors’ internal records as part of this specific inquiry.
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