Judge Blocks DOJ Subpoenas in Federal Reserve Investigation, Delaying Powell Succession

A federal judge in Washington, D.C. has once again ruled against the Justice Department's efforts to revive a criminal investigation targeting Federal Reserve Chair Jerome Powell, dealing another significant blow to what critics are calling a politically motivated legal campaign. Chief U.S. District Judge James Boasberg rejected the DOJ's motion to reconsider his earlier ruling, which had effectively shut down a grand jury probe into Powell.

Boasberg originally blocked the subpoenas in March, concluding they were issued with the improper intent of pressuring Powell to lower interest rates or step down — directives aligned with President Donald Trump's long-standing demands. The subpoenas, filed by D.C. federal prosecutor Jeanine Pirro, a known Trump ally, sought records related to renovation cost overruns at the Federal Reserve's headquarters and Powell's congressional testimony on the matter.

In his latest ruling, Boasberg stated that Pirro's office presented "no evidence whatsoever of fraud" and fell far short of justifying a reversal of his prior decision. A spokesperson for Pirro confirmed plans to appeal, citing what they described as judicial interference with grand jury access. Justice Department leadership has reportedly endorsed the appeal, which would be reviewed by the U.S. Court of Appeals for the D.C. Circuit.

The legal standoff carries major implications for the Federal Reserve's leadership transition. Trump has nominated Kevin Warsh to succeed Powell, but Republican Senator Thom Tillis has pledged to block Warsh's Senate confirmation hearings until the appeal is fully resolved. Powell himself has stated he will not vacate his position until the investigation concludes.

Legal observers note that prosecutors face a notably high burden, having acknowledged in court that they currently lack evidence of any crime committed by Powell. The Federal Reserve has declined to offer public comment on the ongoing dispute.