In a scathing decision unsealed Friday, a U.S. district judge has granted the Federal Reserve’s motion to quash grand jury subpoenas in a high-profile Justice Department investigation involving Fed Chair Jerome Powell.
The 27-page decision from Chief Judge James Boasberg of the U.S. District Court for the District of Columbia cited a “mountain of evidence” that the subpoenas were issued as part of a pressure campaign by the Trump administration against Powell.
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” Boasberg wrote. “On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President. The Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts.”
The existence of the subpoenas was revealed by Powell in an unprecedented video address on Jan. 11. The Fed chair noted that the Department of Justice raised the threat of a criminal indictment based on alleged misstatements Powell made during Senate Banking Committee testimony in June 2025, which related to cost overruns for a renovation project of the Fed’s historic headquarters.
Looking directly into the camera while addressing the American public, Powell stated, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president.”
Reached by email Friday, a Fed spokesperson declined to comment on the judge’s decision.
The Powell probe was initiated by the office of Jeanine Pirro, the U.S. Attorney for the District of Columbia. During a press conference Friday, Pirro lashed out at the judge’s ruling, claiming that it “makes clear his antipathy toward President Trump and this administration.”
“This outrageous decision will be appealed by the United States Department of Justice,” Pirro declared.
She added: “By inserting himself and preventing the grand jury from even obtaining, let alone hearing evidence, he has neutered the grand jury’s ability to investigate crime. As a result, Jerome Powell today is now bathed in immunity preventing my office from investigating the Federal Reserve. This is wrong and it is without legal authority.”
The judge opened his opinion by quoting a series of social media posts by President Donald Trump that either attack Powell personally, criticize his handling of monetary policy, or both.
Noting that Congress has specifically shielded the Federal Reserve from political pressure as an economic safeguard, Boasberg stated that “President Trump has long objected to that insulation and has strenuously pushed for lower rates.”
“During his first and second terms, he has kept up a near-constant campaign to push the Fed to lower rates and has publicly berated it when it has not obliged,” the judge wrote, adding that “Trump has specifically aimed his anger at Chair Powell” and has “berated Powell, threatened him, ordered him to lower rates, or done all three at once.”
Powell’s term as Fed chair expires in May, though his term as a central bank governor runs until Jan. 31, 2028. He has not said whether he would consider remaining on the Fed’s board after his chairmanship term ends, which would be unusual but not unprecedented.
Trump has nominated former Fed Governor Kevin Warsh as Powell’s replacement. But his nomination process has been blocked by Senate Banking Committee member Thom Tillis, R-N.C., who has demanded that the Powell probe be resolved before Warsh’s nomination proceeds.
In a social media post Friday, Tillis said the court ruling “confirms just how weak and frivolous the criminal investigation of Chairman Powell is,” calling it a “failed attack on Fed independence.”
“We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment and move on,” Tillis wrote. “Appealing the ruling will only delay the confirmation of Kevin Warsh as the next Fed Chair.”
