WASHINGTON – A US judge on April 3 reaffirmed his decision to block subpoenas in a criminal investigation into Federal Reserve Chairman Jerome Powell, paving the way for an appeal that could stall President Donald Trump’s efforts to replace him with a more aligned appointee.
Chief US District Judge James Boasberg rejected the Justice Department’s request to reconsider his March 13 ruling, which halted subpoenas issued to the Fed’s Board of Governors. He determined the probes, led by Washington DC prosecutor Jeanine Pirro, a key Trump supporter, aimed improperly to pressure Powell into slashing interest rates or resigning.
The subpoenas targeted details on cost overruns in Fed headquarters renovations and Powell’s 2025 congressional testimony about the project. Powell has dismissed the investigation as a ploy for Trump to exert greater control over monetary policy.
Pirro’s office, vowing to appeal to the DC Circuit Court, alleges potential fraud and false statements by Powell. However, a top prosecutor admitted in a March 3 court hearing that no concrete evidence of crimes has surfaced yet.
The Justice Department supports the appeal, which may delay Senate confirmation of Trump’s nominee, Kevin Warsh, as Fed chair. Republican Senator Thom Tillis has pledged to block Warsh’s nomination amid the legal battle, while Powell vows to stay until the probe concludes.
Fed lawyers hailed the ruling as backed by “overwhelming evidence,” rejecting Justice arguments that Boasberg imposed an overly strict standard for early-stage investigations.