A federal judge has halted the Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell, ruling Friday that subpoenas targeting the Fed leader should be blocked.
Chief U.S. District Judge James Boasberg determined that prosecutors failed to provide adequate evidence of criminal wrongdoing in their investigation of Powell’s oversight of historic building renovations at Federal Reserve facilities.
The criminal probe, led by U.S. Attorney for the District of Columbia Jeanine Pirro, centers on renovation projects at Fed headquarters buildings in Washington. Powell first revealed the existence of the Justice Department investigation on January 11.
In his ruling, Judge Boasberg stated that a “mountain of evidence” indicated the investigation’s true purpose was to force the Fed chair to reduce interest rates or step down from his position.
“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,” Boasberg wrote in his decision.
Powell has consistently characterized the investigation as an attack on Federal Reserve independence and part of former President Trump’s efforts to influence monetary policy decisions.
The Fed’s Board of Governors had filed a motion to block the subpoenas, which demanded details about the renovation projects and Powell’s scheduled July 2025 testimony to the Senate Banking Committee.
Prosecutor Pirro, who was appointed during the Trump administration, announced plans to challenge the judge’s decision. She told reporters that the ruling “has neutered the grand jury’s ability to investigate crime; as a result Jerome Powell today is now bathed in immunity.” Pirro maintained that her suspicions of legal violations justify continuing the case.
The investigation has created political complications on Capitol Hill. Republican Senator Thom Tillis has threatened to block any Federal Reserve nominations through his Banking Committee position as long as the probe continues, potentially stalling confirmation of Trump’s choice to replace Powell when his leadership term concludes in mid-May.
