A federal judge on Friday denied the Trump administration’s bid to revive the defunct subpoenas targeting Federal Reserve Chair Jerome Powell, another blow to the Justice Department’s ability to execute President Donald Trump’s demands.
The subpoenas sought records from a $2.5 billion renovation project at the Fed’s headquarters in Washington. The investigation alleged Powell knowingly misled Congress about the project’s cost. The accusation became central to Trump’s public smear campaign against Powell, whom he appointed to the top Fed position in his first term.
Powell’s lawyers fought the subpoenas, and the Fed chief publicly argued the investigation was motivated by his refusal to succumb to Trump’s pressure campaign on the central bank to slash interest rates, which the president said will boost the U.S. economy.
In his order, Chief Judge James E. Boasberg of U.S. District Court for the District of Columbia wrote, “The Government’s arguments do not come close to convincing the Court that a different outcome is warranted.” He rejected the DOJ’s motion to reconsider his March 13 decision to quash the investigation.
Boasberg wrote in his March 13 decision that “a mountain of evidence” suggested that “the Government served these subpoenas on the [Federal Reserve] Board to pressure its Chair into voting for lower interest rates or resigning.” The judge threw out the subpoenas, but the DOJ quickly filed a motion to reconsider.
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On Friday, Boasberg ruled the DOJ’s motion “ignores the fact that its total lack of a good-faith basis to suspect a crime is relevant to the second, separate question of the subpoenas’ true purpose.”
The federal government can formally appeal Boasberg’s decision, which could complicate the confirmation process for Kevin Warsh, Trump’s pick to lead the central bank after Powell’s term as Fed chair ends next month.
Powell was joined by every living former Fed chair in denouncing the probe as an act of partisanship against the leader of an institution designed to be insulated from political pressure.
Two Republicans on the Senate Banking Committee, Sens. Thom Tillis of North Carolina and Kevin Cramer of North Dakota, expressed deep concern over the investigation. Sen. Lisa Murkowski, R-Ala., called the probe “an attempt at coercion,” in a post on X in January.
Tillis is a key vote on the banking committee, which handles confirmation hearings for Fed appointees and has a narrow 13-11 Republican majority. He has vowed not to support Trump’s pick for Fed chair as long as Powell is under criminal investigation.
Sydney Carruth is a breaking news reporter covering national politics and policy for MS NOW. You can send her tips from a non-work device on Signal at SydneyCarruth.46 or follow her work on X and Bluesky.
Fallon Gallagher is a legal affairs reporter for MS NOW.