Federal judge quashes DOJ investigation into Jerome Powell saying it was just for Trump’s retribution
A federal judge quashed the Department of Justice’s attempt to subpoena Federal Reserve Chairman Jerome Powell, saying the effort was part of the Trump administration’s effort to pressure Powell to lower interest rates.
Judge James Boasberg wrote a ruling for the U.S. District Court for the District of Columbia that referenced President Donald Trump’s repeated taunts against the chairman of the United States’ central bank to force Powell into lowering interest rates.
The U.S. attorney’s office for Washington had sought to subpoena Powell in relation to renovations to the Federal Reserve’s offices.
“A mountain of evidence suggests that the dominant purpose is to harass Powell to pressure him to lower rates,” Boasberg wrote. “For years, the President has publicly targeted Powell because the Fed is not delivering the low rates that Trump demands.”
Boasberg cited how Trump had called Powell, whom Trump nominated in his first term in the White House, “one of my worst appointments.”
Trump has pushed for the chairman to lower interest rates as a means to increase employment. Even on Thursday, Trump called on Powell to lower interest rates amid the war in Iran.
But Powell has attempted to keep the Federal Reserve insulated from politics and hesitated to lower interest rates until the economy could feel the affect of Trump’s across-the-board tariffs. The Federal Reserve has a dual-mandate to keep unemployment low while also controlling inflation.
Boasberg cited how Bill Pulte, the director of the Federal Housing Finance Agency, had posted a letter on X directing Congress to investigate Powell about the renovations and “his political bias,” which led to Trump posting about them on Truth Social.
“The President’s appointed prosecutor promptly complied,” Boasberg wrote. “Those facts strongly imply that this investigation was launched for an improper purpose, as were the resulting subpoenas.”
Jeanine Pirro, the ex-New York judge turned television presenter and Trump loyalist who serves as the U.S. attorney for the District of Columbia, responded to the ruling by attacking Judge Boasberg as an “activist” at a hastily-convened press conference.
She accused Boasberg, who was appointed to the District of Columbia Superior Court by President George W. Bush and elevated to the District Court by Barack Obama, of having “neutered the grand jury’s ability to investigate crime” by quashing the subpoena and called his decision “wrong” and “without legal authority.”
Pirro claimed Boasberg had demonstrated “antipathy towards President Trump and his administration” by citing the president’s myriad public statements calling for Powell to resign or to face prosecution for not lowering interest rates to his liking.
She also accused him of declaring Powell “beyond reproach” with his ruling and predicted “chaos” from courts clogged with motions from future defendants who allege they have been targeted improperly.
“This judge has put himself at the entrance door to the grand jury, slamming that door shut irrespective of the legal process, and thus preventing the grand jury from doing the work that it does,” she said.
Powell’s term as Federal Reserve chairman expires in May. Trump has nominated Kevin Warsh to replace Powell.
