Federal Reserve Chairman Jerome Powell speaks during a press conference on December 10, 2025 in Washington, DC (Photo by Chip Somodevilla/Getty Images)
WASHINGTON – A federal judge blocked the Trump administration’s subpoenas investigating the Federal Reserve and Chairman Jerome Powell, citing “a wealth of evidence” that President Donald Trump is using the investigation to force lower interest rates, an order unsealed Friday said.
In a devastating way 27 page order Issued Wednesday, Chief Judge James Boasberg of the U.S. District Court for the District of Columbia wrote that there was “ample evidence that the primary (if not sole) purpose of the subpoenas is to harass and pressure Powell to either defer to the president or resign and make way for a Fed chair.”
Explaining his reasons for granting the Federal Reserve Board of Governors’ request to quash the subpoenas, Boasberg added: “For years, the President has publicly targeted Powell because the Fed is not delivering the low interest rates that Trump demands.”
On more than 100 occasions, Boasberg wrote, Trump or “his surrogates” made statements attacking Powell. The judge described more than a dozen posts by Trump on his Truth Social platform in which he insulted Powell and called for his resignation.
Boasberg also cited the Trump administration Try to prosecute former FBI Director James Comey and New York Attorney General Letitia James.
“Being perceived as an opponent of the president has become risky in recent years,” Boasberg wrote.
Boasberg wrote later in the order that he would also reverse the Fed board’s request to quash the subpoenas and government resistance because Justice Department officials had already revealed details about the investigation.
The government “has presented virtually no evidence to suspect Chairman Powell of a crime; in fact, its justifications are so flimsy and unfounded that the Court can only conclude that they are bogus. The Court therefore concludes that the subpoenas were issued for an improper purpose and will vacate them,” Boasberg concluded.
Prosecutor criticizes verdict
In a brief news conference Friday afternoon where she debated controversy with reporters, U.S. Attorney for the District of Columbia Jeanine Pirro called Boasberg’s decision “outrageous” and said the government plans to appeal.
“One of the age-old tools available to all prosecutors to investigate any crime, including cost overruns, is a grand jury subpoena. But today in Washington, an activist judge took that tool away from us by intervening and preventing the grand jury from even obtaining, let alone hearing, evidence,” Pirro said.
“He neutralized the grand jury’s ability to investigate crimes. As a result, Jerome Powell now enjoys immunity and prevents my office from investigating the Federal Reserve. This is wrong and without legal authority,” she said.
The investigation was launched in January
Justice Department officials served grand jury subpoenas to the central bank Mid-January as part of an investigation into multi-year renovation costs at the Fed’s offices in Washington, D.C., and whether Powell lied to Congress about it in June.
The subpoenas led to a uncommon video statement from Powell, who claimed that the subpoenas were not about monitoring construction costs but about the Fed’s independence in setting interest rates.
Powell’s term as chairman expires in May.
To replace him, Trump has nominated Bank executive and former Fed board governor Kevin Warsh, who will need the support of all Republicans on the closely divided Senate Banking Committee to reach a full vote in the Senate.
Outgoing Sen. Thom Tillis, R-N.C., who sits on the committee, has said he will refuse to support Warsh until the administration ends its criminal investigation into Powell.
“This ruling confirms how weak and frivolous the criminal investigation against Chairman Powell is, and is nothing more than a failed attack on the Fed’s independence,” Tillis said in a statement on Friday.
“We all know how this is going to end,” he continued. “The U.S. Attorney’s Office should avoid further embarrassment and move forward. An appeal of the ruling will only delay the confirmation of Kevin Warsh as the next Fed Chair.”
Trump nominated Powell for the role during his first term, and President Joe Biden nominated him again in 2021. The Senate confirmed his appointment by overwhelming majorities on both occasions.
