Showdown at the Federal Reserve: Legal Battle Over Powell Subpoenas Escalates

A U.S. judge affirmed his decision to block subpoenas in a criminal probe into Fed Chair Jerome Powell. This move could delay President Trump's attempt to replace Powell. The subpoenas aimed to pressure Powell amidst allegations of mismanagement at the Fed. An appeal is anticipated, potentially further delaying leadership changes.

A United States judge has upheld his previous ruling blocking subpoenas in the criminal investigation of Federal Reserve Chair Jerome Powell. This decision deals a blow to attempts to pressure Powell as the administration seeks to install a new central bank chief.

The subpoenas were initially issued by Jeanine Pirro, a federal prosecutor and ally of President Trump, to look into alleged cost overruns at the Fed's headquarters and Powell's congressional testimony. This legal win comes as Powell alleges the probe is a pretext to increase presidential influence over the Fed.

Pirro and the Justice Department plan to appeal the ruling, which could stall the confirmation of Trump's favored candidate, Kevin Warsh, to replace Powell. Senator Thom Tillis has stated his intention to block Warsh's nomination until the legal proceedings are concluded.

(With inputs from agencies.)