Federal Judge Blocks DOJ Subpoenas Targeting Federal Reserve Chair Jerome Powell

On April 3, 2026, Chief U.S. District Judge James Boasberg reaffirmed his earlier ruling to quash two grand jury subpoenas issued by the Justice Department (DOJ) against Federal Reserve Chair Jerome Powell. The subpoenas were part of a criminal investigation into Powell's testimony regarding a $2.5 billion renovation project at the Federal Reserve's headquarters. The judge characterized the investigation as politically motivated, aimed at pressuring Powell to lower interest rates, a demand frequently voiced by President Donald Trump.

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Judge Boasberg's decision emphasized that the DOJ had failed to provide new evidence or identify any material errors in his previous ruling, which deemed the subpoenas improper. He noted that the subpoenas were not part of a legitimate investigation but rather an attempt to exert political pressure on Powell. In his ruling, Boasberg stated, “No matter whom the subpoenas were addressed to, it was clear whom they sought dirt on: Powell.” This sentiment reflects the judge's view that the investigation was driven by a vendetta rather than genuine legal concerns.

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The subpoenas were issued amid ongoing tensions between the Trump administration and Powell, who has resisted calls to rapidly cut interest rates. The investigation has not resulted in any criminal charges against Powell. U.S. Attorney Jeanine Pirro, overseeing the investigation, has publicly criticized Boasberg's ruling, labeling him an "activist judge" and pledging to appeal the decision.

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The political ramifications of this legal battle are significant. Senator Thom Tillis (R-N.C.), a member of the Senate Banking Committee, has stated he will block any Fed nominees until the DOJ's investigation concludes. This stance could delay the confirmation of Kevin Warsh, Trump's nominee to succeed Powell, potentially extending Powell's tenure beyond his term's expiration in mid-May.

Judge Rejects DOJ’s Request to Revive Powell Subpoenas

Critics of the DOJ's actions, including Senator Tillis, argue that the investigation undermines the Federal Reserve's independence. Tillis described the ruling as confirmation of the investigation's frivolity, asserting that it is a "failed attack on Fed independence." This bipartisan concern highlights the broader implications of the DOJ's approach to the Federal Reserve's leadership.

Judge Rejects DOJ’s Request to Revive Powell Subpoenas

In response to the ruling, Powell has indicated his willingness to remain in his position as "chairman pro tem" if a successor is not confirmed by the end of his term. He has also expressed a commitment to stay on the board until the investigation concludes. Meanwhile, Pirro's office has indicated plans to appeal the ruling, which could prolong the legal conflict and further complicate the Fed's leadership transition.

New York Post

The DOJ's appeal is expected to be filed soon, potentially escalating the legal battle and delaying the confirmation process for Trump's nominee to lead the Federal Reserve. As the situation unfolds, the implications for the central bank's autonomy and the broader economic landscape remain closely monitored by financial markets and political observers alike.

Politico