Federal judge blocks DOJ subpoenas against Fed Chairman Jerome Powell

A federal judge blocked the subpoena that the Department of Justice (DOJ) had issued against Federal Reserve Chairman, Jerome Powell. In mid-January, the agency led by Pam Bondi opened an investigation against Powell over the costs of the Fed building renovations, prompting criticism from both Republican and Democratic members of Congress.

Specifically, the DOJ criminal investigation aims to determine whether Powell provided misleading information about the scope and costs of the modernization project of the Washington, D.C. facility. The work is scheduled for completion in 2027 and includes modernization of the historic Marriner S. Eccles Building and another structure located on Constitution Avenue, both built in the 1930s.

The subpoenas against Powell sought documentation on the recent renovations to the Federal Reserve buildings and on testimony he gave before the Senate Banking Committee regarding those renovations.

"The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual," Judge James Boasberg wrote.

"The Government might as well investigate him for mail fraud because someone once saw him send a letter," he added. In addition, Boasberg included in his ruling quotes to posts made by Donald Trump on Truth Social against Powell: "That is one of at least 100 statements that the President or his deputies have made attacking the Chair of the Federal Reserve and pressuring him to lower interest rates."

Jeanine Pirro, U.S. attorney for the District of Columbia, advanced that she will appeal Judge Boasberg's decision. "Jerome Powell today is now bathed in immunity, preventing my office from investigating the Federal Reserve," she told reporters Friday afternoon.

Powell's term at the helm of the Fed ends in May 2026. Trump has already announced he will nominate Kevin Warsh to replace him. Warsh, a former member of the Fed's Board of Governors, is also a professor and academic.

Recently, he was interviewed by Peter Robinson for the Hoover Institution's popular 'Uncommon Knowledge' program. There, he was optimistic about the economic future of the United States, driven by innovation, productivity and population dynamism.