A federal judge, James Boasberg, on Friday halted a Justice Department effort to subpoena documents from the Federal Reserve, delivering a sharp rebuke to prosecutors investigating renovation costs at the central bank’s Washington headquarters. In a ruling dated March 11, the US District Judge quashed subpoenas issued to the Federal Reserve’s governing board, concluding they were improperly motivated. The documents detailing the decision were made public on Friday.
“The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them,” Boasberg wrote.
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What did Judge Boasberg say?
In his order, Boasberg suggested the subpoenas were less about investigating renovation expenses and more about pressuring Fed Chair Jerome Powell.
“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” the judge wrote.
DOJ investigation
The controversy traces back to January, when Powell disclosed that the Justice Department had opened a probe into cost overruns related to the renovation of the Federal Reserve’s headquarters in Washington.
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The investigation was highly unusual, as federal probes targeting the central bank are rare. Powell responded at the time by warning that the effort could be an attempt to intimidate the institution and undermine its independence.
“This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” Powell said.
Judge criticizes DOJ
Boasberg’s ruling was particularly critical of the Justice Department’s case, arguing that prosecutors failed to present meaningful evidence linking Powell to any wrongdoing.
“The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual,” the judge wrote.
Jeanine Pirro responds
US prosecutor Jeanine Pirro quickly condemned the ruling and confirmed that the Justice Department would challenge the decision in court.
“This is the antithesis of American justice. Exonerating anyone without any records, without an investigation or question, is not how our criminal justice system works,” Pirro told reporters.
She added that the administration would pursue an appeal.
“No one, folks, is above the law, and this outrageous decision will be appealed by the United States Department of Justice,” she said.
Tensions with the White House
The dispute comes amid long-running tensions between the White House and the Federal Reserve over monetary policy. President Donald Trump has repeatedly criticized Powell and the central bank’s decisions on interest rates.
(With AFP inputs)