The court ruling comes as Powell’s term winds down.
A federal judge blocked subpoenas issued to the Federal Reserve as part of a criminal investigation of Chair Jerome Powell.
In a March 13 ruling, Judge James Boasberg found that the subpoenas were intended to “harass and pressure” the central bank chief into lowering interest rates or to drive him from office so a more compliant successor could be installed.
“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” Boasberg said in the ruling.
“On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President.”
Powell said in January that the Department of Justice had served the Fed with grand jury subpoenas related to his June 2025 testimony about renovations to the central bank’s headquarters.
The Federal Reserve declined to comment.
Approved in 2017 and budgeted at $1.9 billion, the overhaul was later revised to $2.5 billion. The increase reflected higher labor and material costs, the discovery of asbestos and soil contamination, and extended construction schedules.
But Powell expressed doubt that the criminal investigation was driven by his testimony before the Senate Banking Committee or by cost overruns, calling them “pretexts.”
Instead, the Fed chair asserted, the probe was part of an intimidation campaign by the administration to ease monetary policy.
“This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure,” Powell said in a Jan. 11 video statement.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”
Jeanine Pirro, U.S. attorney for the District of Columbia, says that Boasberg’s decision has “neutered the grand jury’s ability to investigate crime.”
“As a result, Jerome Powell today is now bathed in immunity, preventing my office from investigating the Federal Reserve. This is wrong, and it is without legal authority,” Pirro said at a March 13 news conference.
Days after Powell announced the investigation, Pirro stated that he could have avoided a formal investigation if the institution “had just responded to our outreach.”
Pirro, in a Jan. 13 statement on X, noted that the U.S. Attorney’s Office had submitted inquiries regarding the costs behind the renovations and Powell’s remarks before lawmakers last summer.
“The word ‘indictment’ has come out of Mr. Powell’s mouth, no one else’s,” Pirro said. “None of this would have happened if they had just responded to our outreach. This office makes decisions based on the merits, nothing more and nothing less.”
President Donald Trump denied involvement in the investigation.
Speaking to reporters on Jan. 13, Trump stated that Powell is either “incompetent” or “crooked.”
“I don’t know what he is, but he certainly doesn’t do a very good job,” the president stated.
For the past year, Trump has repeatedly lambasted Powell and his colleagues at the central bank for not lowering interest rates fast enough.
The Federal Open Market Committee has left the benchmark federal funds rate—a key short-term policy rate that influences borrowing costs for businesses and consumers—unchanged this year in a range of 3.5 percent to 3.75 percent. Futures market data indicate that officials are not anticipated to lower rates until September.
But Trump, in a March 12 Truth Social post, said Powell needs to cut rates right away.
“Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today? He should be dropping Interest Rates immediately, not waiting for the next meeting!” the president said on his social media platform.
By Andrew Moran
