Judge Blocks DOJ Subpoenas, Probe of Federal Reserve

central banks legal proceedings

A federal judge has blocked Justice Department subpoenas issued to Federal Reserve Chair Jerome Powell and the Federal Reserve Board. The investigation, disclosed in January, centered on the management of the central bank’s headquarters renovation and Powell’s related congressional testimony. Judge James Boasberg quashed the subpoenas, citing a lack of evidence against Powell and suggesting the probe was improperly motivated. The judge indicated the investigation appeared to be driven by a desire for “vengeance” and aimed to pressure Powell to lower interest rates. The case has drawn criticism and raised concerns about political pressure on the US central bank, with some characterizing the inquiry as an attempt by the Trump administration to influence monetary policy. The judge’s decision represents a setback for the investigation.

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