Judge Halts DOJ Subpoenas on Fed Chair Powell

A federal judge has blocked subpoenas issued by the U.S. Justice Department against Federal Reserve Chair Jerome Powell, describing them as part of a politically motivated probe by the Trump administration. The court's decision complicates efforts to replace Powell with Trump's nominee, former Fed governor Kevin Warsh.

A federal judge has temporarily blocked subpoenas issued by the U.S. Justice Department in its investigation into Federal Reserve Chair Jerome Powell. The ruling described the subpoenas as politically motivated, with the judge citing a "mountain of evidence" suggesting they were aimed at pressuring Powell to lower interest rates or resign.

The subpoenas, seeking information on renovations of the Fed's headquarters, were deemed invalid as the court found no substantial evidence of criminal activity by Powell. This decision complicates the Justice Department's pursuit and affects the nomination process for Powell's successor, Kevin Warsh.

Trump has consistently pressured the Federal Reserve to lower interest rates, criticizing Powell for his monetary policies. The ongoing legal battles signal continuing friction between Trump and governmental entities, with this ruling being one of several recent judicial rejections of investigations targeting Trump's critics.

(With inputs from agencies.)