Judge Blocks Subpoenas Against Fed Chair Jerome Powell

U.S. District Judge James Boasberg quashed subpoenas issued by the Department of Justice against Federal Reserve Chair Jerome Powell, ruling that the government "produced essentially zero evidence" to justify its investigation . The subpoenas had sought records related to a $2.5 billion renovation project at the Fed, but the judge found the true purpose was political pressure.

In a pointed opinion, Judge Boasberg wrote that "a mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning" . The ruling underscores the ongoing tension between the Trump administration and the politically independent central bank, with Powell's term as chair set to expire in May.

The DOJ, led by U.S. Attorney Jeanine Pirro, immediately announced plans to appeal what she called an "outrageous" ruling . For markets, the decision provides temporary relief from concerns about Fed independence, though the appeal process and the broader political pressure campaign against Powell could continue to generate volatility.