Judge's Ruling Stalls Trump's Assault on Jerome Powell and the Federal Reserve

WASHINGTON, April 3 - A U.S. judge reaffirmed his earlier ruling on Friday, blocking subpoenas linked to a criminal investigation of Federal Reserve Chair Jerome Powell, which may complicate President Donald Trump’s efforts to appoint a more agreeable head of the central bank.

Chief U.S. District Judge James Boasberg, presiding in the District of Columbia, dismissed the Justice Department’s request to revisit his previous decision that effectively paused the criminal inquiry into Powell.

In a ruling dated March 13, Boasberg concluded that subpoenas directed at the Fed’s Board of Governors in January were improperly motivated, aimed at coercing Powell into complying with Trump’s demands for swift interest rate reductions or resignation.

The subpoenas, initiated by Jeanine Pirro, the top federal prosecutor in Washington D.C. and a known Trump supporter, sought details regarding budget overruns on renovations at the Fed’s headquarters and Powell’s congressional testimony concerning the project last year.

This ruling marks another success for Powell in his ongoing conflict with Pirro’s office, which he claims is merely a guise for Trump to exert greater control over the Federal Reserve and its monetary policies.

Pirro has expressed her determination to pursue the investigation further and indicated her office is ready to appeal to the U.S. Court of Appeals for the D.C. Circuit. Sources reveal that Justice Department leadership supports this appeal.

The potential appeal could postpone the confirmation of Kevin Warsh, Trump’s nominee to replace Powell as Fed chair. Senator Thom Tillis, a Republican on the Senate Banking Committee who has criticized the investigation into Powell, has pledged to obstruct Warsh’s nomination while the appeal is pending.

Powell has committed to remaining at the central bank until the investigation concludes.

Prosecutors are examining Powell for possible fraud and false statements made to a congressional committee. However, a senior attorney from Pirro’s office conceded in court on March 3 that they currently lack evidence proving Powell committed any crime, as per court transcripts.

Pirro’s office faces significant legal challenges in persuading Boasberg to overturn his prior decision, needing to demonstrate either new evidence or a clear legal misstep by the judge.

Justice Department attorneys contended that Boasberg imposed an excessively high threshold for prosecutors at this early stage of the investigation and misinterpreted the timeline involved.

Meanwhile, lawyers representing the Fed’s Board of Governors maintained that Boasberg’s initial ruling was supported by “overwhelming evidence.”