Judge Blocks Subpoenas in Trump-Era Inquiry into Federal Reserve

A U.S. judge halted subpoenas in a criminal investigation of Federal Reserve Chair Jerome Powell, citing intimidation by a Trump-appointed prosecutor. The investigation concerns overruns in Fed renovations and allegations against Powell, viewed as attempts to pressure the Fed into rate cuts. The Justice Department plans to appeal.

In a significant legal development, a U.S. judge has blocked subpoenas that were part of a criminal investigation into Federal Reserve Chair Jerome Powell. The subpoenas had been issued by Jeanine Pirro, a prosecutor appointed by former President Donald Trump, and were seen as an effort to coerce the Fed into cutting interest rates.

Chief U.S. District Judge James Boasberg found the subpoenas lacked legal validity, describing the probe as an 'improper purpose' with 'no evidence whatsoever' of any crime by Powell. The judge's decision casts uncertainty over the investigation and Trump's potential plans to install Kevin Warsh as Fed Chair.

The ruling has been met with fury by Pirro, while Republican Senator Thom Tillis plans to oppose any Fed nomination until the inquiry ends. The Justice Department intends to appeal Boasberg's decision amid ongoing scrutiny of Trump's past clashes with the judiciary.

(With inputs from agencies.)