US judge nixes two subpoenas against Federal Reserve chair Jerome Powell | Donald Trump News
Federal Judge Quashes Subpoenas Related to Fed Chair Powell Investigation
A U.S. District Court judge has granted a motion to quash two subpoenas involving Jerome Powell, the Chair of the Federal Reserve. The decision, issued by Judge James Boasberg on Friday, cites improper purpose as the basis for invalidating the subpoenas, which the judge deemed were intended to harass Powell into compliance.
In his 27-page ruling, Boasberg noted that Powell has faced a concerted effort, particularly under former President Donald Trump, to compel the Federal Reserve to reduce interest rates significantly. Trump has publicly called for Powell’s resignation as part of this exertion to influence monetary policy.
“Evidence strongly suggests that the government issued these subpoenas to pressure its Chair to vote for lower interest rates or to resign,” Boasberg wrote, referencing numerous public comments from Trump. The judge stated that the government failed to present adequate evidence to substantiate any criminal behavior by Powell. “The justifications are so insubstantial that the court can only conclude they were pretextual,” Boasberg added.
Though Boasberg ordered the unsealing of the subpoenas, portions remain redacted. The ruling was met with swift criticism from U.S. Attorney Jeanine Pirro, who characterized it as an overreach into grand jury proceedings. She asserted that the decision would be appealed. “An activist judge has taken that tool away from us,” she said, referring to the use of grand jury subpoenas in criminal investigations.
When pressed by reporters, Pirro denied any political motives behind the subpoenas, emphasizing a focus on legal matters and the welfare of the district. However, the judge’s decision hints at a broader pattern, with Boasberg asserting that the Trump administration has sought to investigate and prosecute political adversaries.
Boasberg referred to instances where Trump urged Attorney General Pam Bondi to pursue criminal charges against several critics, including New York Attorney General Letitia James and former FBI Director James Comey. In contrast to this alleged political targeting, Powell’s public tenure as Federal Reserve chair, nominated during Trump’s first term, has become increasingly contentious.
Recent months have also seen significant pressure from Trump, who championed drastic cuts to interest rates to invigorate the economy. This tactic, while potentially beneficial in the short term, raises concerns among economists about long-term economic stability, particularly following rate hikes initiated to manage inflation during the COVID-19 pandemic.
Trump has suggested he might seek to remove Powell from his position, stating, “If I want him out, he’ll be out of there real fast.” Tensions escalated publicly earlier this month when the Federal Reserve announced that Powell was under investigation, with the Justice Department pursuing two grand jury subpoenas regarding cost overruns on renovations at the Fed’s headquarters.
Boasberg’s decision illustrates federal courts’ ability to quash subpoenas issued for unreasonable or oppressive purposes. The judge concluded, “The dominant purpose appears to be to harass and pressure Powell.”
The Trump administration has faced scrutiny for allegedly manipulating legal mechanisms for political gain, drawing criticism even from some within the Republican Party. Senator Thom Tillis, who is not seeking re-election in 2026, has withheld support for Trump’s nominee to replace Powell until the investigation concludes. In a statement, Tillis praised Boasberg’s ruling, emphasizing the lack of merit in the investigation against Powell and warning of further consequences if the subpoenas were appealed.
This ruling underscores the ongoing complexities between the Federal Reserve’s independence and political pressures aimed at steering monetary policy.
