Judge Blocks DOJ Subpoenas Against Fed Chair Jerome Powell

A federal judge has blocked subpoenas issued by the Justice Department against Federal Reserve Chair Jerome Powell, ruling that the government failed to provide sufficient evidence to justify the criminal investigation.

U.S. District Judge James Boasberg determined that the government "produced essentially zero evidence" to support its probe, suggesting the subpoenas were intended to harass Powell or pressure him to resign. Boasberg noted that "a mountain of evidence" indicated the subpoenas were aimed at influencing Powell's decisions on interest rates.

The Justice Department's investigation centered on Powell's testimony to Congress about cost overruns in a multi-billion-dollar office renovation project. Powell had previously dismissed the probe as politically motivated, designed to sway the Fed's interest rate policy.

Acting U.S. Attorney Jeanine Pirro criticized Boasberg as an activist judge and vowed to appeal the ruling. Meanwhile, Senator Thom Tillis, a Republican on the Senate Banking Committee, warned against appealing the decision, calling the investigation "weak and frivolous" and an attack on the Fed's independence.