Judge James Boasberg said prosecutors failed to show grounds for demanding information from the central bank. Prosecutor Jeanine Pirro said she would appeal, calling the decision wrong and claiming it weakened her ability to investigate potential crimes.
The subpoenas sought details about cost overruns tied to renovations at the Fed’s offices. The dispute has raised concerns about political pressure on the central bank and complicated efforts by the White House to replace Powell when his term ends in May.
Powell had previously accused the administration of using the probe to pressure the Fed into lowering interest rates. In his ruling, Boasberg said there was strong evidence the subpoenas were meant to harass Powell or force him to step down, while the government had produced virtually no evidence suggesting criminal wrongdoing.
The investigation has also become entangled in politics. Donald Trump appointed Pirro last year and later nominated Kevin Warsh to replace Powell. Meanwhile, Senator Thom Tillis warned the dispute could delay confirmation of the new nominee.
Pirro dismissed those concerns, saying her office would continue pursuing the case through the courts.
A US judge has blocked the Justice Department’s attempt to investigate the Federal Reserve, ruling there was “no evidence” to justify the probe and handing a victory to Jerome Powell.
Judge James Boasberg said prosecutors failed to show grounds for demanding information from the central bank. Prosecutor Jeanine Pirro said she would appeal, calling the decision wrong and claiming it weakened her ability to investigate potential crimes.
The subpoenas sought details about cost overruns tied to renovations at the Fed’s offices. The dispute has raised concerns about political pressure on the central bank and complicated efforts by the White House to replace Powell when his term ends in May.
Powell had previously accused the administration of using the probe to pressure the Fed into lowering interest rates. In his ruling, Boasberg said there was strong evidence the subpoenas were meant to harass Powell or force him to step down, while the government had produced virtually no evidence suggesting criminal wrongdoing.
The investigation has also become entangled in politics. Donald Trump appointed Pirro last year and later nominated Kevin Warsh to replace Powell. Meanwhile, Senator Thom Tillis warned the dispute could delay confirmation of the new nominee.
Pirro dismissed those concerns, saying her office would continue pursuing the case through the courts.
