Federal Judge Quashes Subpoenas in Investigation of Federal Reserve Chair Jerome Powell

On March 13, 2026, U.S. District Judge James Boasberg issued a ruling that quashed subpoenas from the Department of Justice (DoJ) aimed at Federal Reserve Chair Jerome Powell. The judge characterized the subpoenas as politically motivated, stating they were intended to "harass and pressure" Powell into resigning or yielding to President Donald Trump's demands for lower interest rates. Boasberg noted that the government had produced "essentially zero evidence" of any wrongdoing by Powell, describing the investigation as lacking merit and primarily aimed at exerting political leverage over the Federal Reserve.

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The investigation, led by U.S. Attorney Jeanine Pirro, focused on alleged cost overruns related to a $2.5 billion renovation of the Federal Reserve's headquarters. The inquiry was initiated after Powell's testimony to Congress regarding the project, which had been scrutinized for exceeding its original budget. Powell has consistently denied any wrongdoing, asserting that the investigation was a pretext for political intimidation rather than a legitimate inquiry into fiscal mismanagement.

New Tang Dynasty

The ruling has significant implications for the ongoing political dynamics surrounding the Federal Reserve. President Trump has been vocal in his criticism of Powell, accusing him of failing to lower interest rates to stimulate the economy. Trump's desire to replace Powell with a more compliant figure, Kevin Warsh, has been complicated by the ongoing investigation. Senator Thom Tillis, a Republican member of the Senate Banking Committee, has pledged to block Warsh's confirmation until the investigation is resolved, labeling the inquiry as "weak and frivolous."

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In response to the ruling, Pirro expressed her intent to appeal, describing the judge's decision as an infringement on prosecutorial authority. She criticized Boasberg as an "activist judge" and vowed to continue pursuing the investigation despite the setback.

Bloomberg

Critics of the investigation, including Senator Tillis, have condemned the DoJ's actions as an attack on the independence of the Federal Reserve. They argue that the subpoenas were issued not out of genuine concern for fiscal oversight, but rather as a means to exert political pressure on Powell. This perspective highlights the broader implications for the integrity of monetary policy in the United States, emphasizing the need for the Federal Reserve to operate free from political influence.

DW News

The DoJ's plans to appeal the ruling will likely prolong the uncertainty surrounding Powell's leadership and the confirmation of Warsh. As the investigation continues, the relationship between the White House and the Federal Reserve remains strained, raising concerns about the potential impact on U.S. monetary policy and global financial stability.

Federal Judge Quashes Politically Motivated Subpoenas Against Fed Chair

• “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.” — James Boasberg, U.S. District Judge

Trump probe of Fed Chair Powell meant to harass, judge says while denying subpoenas

• “just how weak and frivolous the criminal investigation of Chairman Powell is.” — Thom Tillis, U.S. Senator

DW News

• “today, however, in Washington, an activist judge has taken that tool away from us by inserting himself and preventing the grand jury from even obtaining, let alone hearing evidence.” — Jeanine Pirro, U.S. Attorney

Bloomberg

This legal battle underscores the ongoing tensions between the executive branch and the Federal Reserve, with significant implications for both domestic economic policy and international financial markets.

Federal Judge Quashes Politically Motivated Subpoenas Against Fed Chair