Court Blocks Controversial Subpoenas in Fed Chair Investigation

A federal judge has blocked subpoenas served to Federal Reserve Chair Jerome Powell by the Justice Department, citing a lack of evidence and suggesting the investigation aimed to pressure Powell to lower interest rates or resign. This move was linked to the Trump administration's attempts to influence the Fed.

In a significant development, a federal judge on Friday blocked subpoena efforts by the Justice Department targeting Federal Reserve Chair Jerome Powell, stemming from an investigation alleged to concern the central bank's management and renovation efforts.

Chair Powell, who publicly disclosed the investigation on January 11, criticized it as a threat to the Federal Reserve's independence, aligning it with broader attempts by the Trump administration to exert pressure on the central bank to reduce interest rates. The judge, citing substantial evidence, concurred, suggesting that the investigation's motives were less about justice and more about coercing Powell to either lower rates or step down from his position.

Chief Judge James Boasberg, in his decision, pointed out the lack of concrete evidence supporting any criminal actions by Chair Powell. "The Government has produced essentially zero evidence to suspect Chair Powell of a crime," he stated, marking the Justice Department's justifications as both thin and pretextual, thus deeming the subpoenas unjustified.

(With inputs from agencies.)