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Judge Quashes Subpoenas, Delays Powell Replacement Amid Pressure

3/16/2026

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Summary

Story summary

Federal Judge James Boasberg quashed the subpoenas against Federal Reserve Chair Jerome Powell.
He cited lack of evidence and improper motives for the subpoenas.
The subpoenas sought to pressure Powell to lower rates or resign, reflecting pressure from U.S. President Donald Trump.
The ruling delayed the Senate's consideration of Kevin Warsh to replace Powell.
Senator Thom Tillis vowed to block the nomination until the investigation is resolved.

History

Historical Context

The Federal Reserve Act, enacted on December 23, 1913, established the Federal Reserve System to stabilize the U.S. economy following the Panic of 1907. This act created a central banking authority tasked with managing monetary policy, including interest rates and inflation. Historical tensions between political influence and economic independence continue to shape the Fed's operations, echoing challenges faced during the 1970s inflation crisis.

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Story summary

Federal Judge James Boasberg quashed the subpoenas against Federal Reserve Chair Jerome Powell.
He cited lack of evidence and improper motives for the subpoenas.
The subpoenas sought to pressure Powell to lower rates or resign, reflecting pressure from U.S. President Donald Trump.
The ruling delayed the Senate's consideration of Kevin Warsh to replace Powell.
Senator Thom Tillis vowed to block the nomination until the investigation is resolved.

1 / 2