Federal Judge Rejects DOJ Attempt to Revive Fed Subpoenas

Washington, April 3 – Chief U.S. District Judge James Boasberg upheld his March 13 ruling that quashed two grand‑jury subpoenas the Justice Department issued to the Federal Reserve. The subpoenas were part of a criminal probe into Chairman Jerome Powell and a $2.5 billion renovation of the Fed’s headquarters.

Background

The investigation, launched by the Trump administration, was widely seen as an effort to pressure the Fed to lower interest rates or replace Powell. The DOJ argued the subpoenas were justified, but the judge called the government’s arguments “pretextual” and lacking evidence of a crime.

Court Decision

Boasberg denied the DOJ’s motion to reconsider, stating the “mountain of evidence” showed the subpoenas were intended to influence monetary policy rather than pursue a legitimate crime. The decision leaves the probe dead‑ended for now.

Implications

The ruling sets the stage for an appeal that could climb to the Supreme Court, further delaying any attempt by the administration to reshape the central bank’s leadership. Analysts say the case underscores the legal limits of political pressure on the Fed.