Judge Blocks Trump's Bid to Influence Fed, Setting Stage for Appeal

A U.S. judge upheld the decision to block subpoenas in the investigation of Federal Reserve Chair Jerome Powell, potentially delaying President Trump's effort to replace him. The subpoenas seemed aimed at pressuring Powell to comply with Trump's monetary policy desires. Justice Department plans to appeal the decision.

In a pivotal ruling on Friday, a U.S. judge maintained his prior decision to block subpoenas in a criminal investigation concerning Federal Reserve Chair Jerome Powell. This move likely paves the way for an appeal, stalling President Donald Trump's plan to appoint a more amenable Fed leader.

Chief U.S. District Judge James Boasberg quashed the Justice Department's request to revise his earlier judgment, which effectively paused the probe into Powell. The subpoenas issued in January were deemed a tactic to pressure Powell into adhering to Trump's demands to quickly lower interest rates or resign.

The ruling represents a significant win for Powell in his ongoing legal dispute with the prosecutors, backed by Trump's ally Jeanine Pirro. The appeal process, supported by Justice Department leadership, could further delay the confirmation of Kevin Warsh, Trump's proposed successor for the Fed chair.