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Judge blocks DOJ investigation into Federal Reserve
A federal judge has ruled against the Department of Justice's attempt to investigate the Federal Reserve, handing a legal win to Fed Chair Jerome Powell. Judge James Boasberg concluded the probe lacked justification and appeared politically motivated.
Powell's stance and DOJ response
Powell had previously accused the Trump administration of using the investigation as leverage to push for lower interest rates. In a rare public statement, he released a video alleging the probe was an effort to pressure the central bank.
DOJ prosecutor Jeanine Pirro, who issued the subpoenas in January, announced plans to appeal the ruling. She called the decision "wrong on its face" and accused the judge of undermining her office's authority to investigate potential crimes.
Allegations of political interference
Boasberg's ruling stated the subpoenas were issued for an "improper purpose"-to coerce Powell into aligning with President Trump's demands for rate cuts. The judge found no evidence of wrongdoing by Powell, dismissing the DOJ's justifications as "pretextual."
"There is 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 who will."
Judge James Boasberg
Fallout over Fed leadership
The case has intensified concerns about political pressure on the Federal Reserve, particularly as Trump's term to appoint a new chair approaches. Powell's current term ends in May, and the White House has nominated Kevin Warsh as his potential successor.
Senator Thom Tillis, a Republican from North Carolina, has threatened to block Warsh's confirmation unless the investigation is resolved. In a social media post, Tillis called the probe "weak and frivolous," urging Pirro's office to abandon the appeal to avoid further "embarrassment."
Pirro defends investigation
At a press conference, Pirro dismissed concerns that her legal actions could delay Powell's replacement. She insisted her focus remained on the investigation, not the Fed's leadership transition.
"I don't know and I don't care. I am in a legal lane."
Jeanine Pirro, DOJ Prosecutor
The subpoenas sought documents related to cost overruns in Federal Reserve office renovations, a matter Pirro described as "outrageous" to dismiss. She argued prosecutors typically aren't required to present evidence at this stage of an investigation.
Federal Reserve declines comment
The Federal Reserve has not responded to Boasberg's ruling. The central bank has remained silent throughout the legal dispute, while lawmakers and analysts debate the broader implications for its independence.
