A federal judge has blocked subpoenas issued to Federal Reserve Chair Jerome Powell, delivering a setback to a Justice Department inquiry into whether Powell misled Congress. U. S. District Judge James Boasberg ruled that the government had presented "essentially zero evidence" to suspect Powell of a crime. The investigation centered around Powell's testimony regarding the $2.5 billion renovation of the Federal Reserve's headquarters.
Judge Boasberg suggested the subpoenas were a pretext to pressure Powell into lowering interest rates or resigning, echoing Powell's earlier claims that the investigation was an attack on the Fed's independence. The judge stated there was "abundant evidence" that the subpoenas' primary purpose was to harass Powell. The Justice Department, under U. S. Attorney Jeanine Pirro, opened the investigation last year after some Republicans, including former President Trump, questioned the rising costs and amenities of the renovation.
Powell revealed the existence of the investigation in January, stating that the subpoenas threatened a criminal indictment related to his June 2025 testimony before the Senate Banking Committee. He defended the renovation project, stating that public reports describing it as overly lavish were inaccurate. Pirro has stated that the Justice Department will appeal Boasberg's decision.
Senator Thom Tillis has blocked the confirmation of Kevin Warsh, President Trump's pick to replace Powell when his term expires in May, until the investigation is resolved. Tillis stated the ruling confirms how weak the criminal investigation is.
