A US federal judge has blocked subpoenas from the Trump administration targeting the Federal Reserve as part of a criminal probe into Chair Jerome Powell, according to court documents made public earlier today.
Judge James Boasberg issued a sharply critical ruling against the investigation being conducted by prosecutors working under Washington DC’s US Attorney Jeanine Pirro.
The decision, written on Wednesday but only unsealed today, found that the subpoenas served no legitimate prosecutorial purpose.
President Donald Trump has targeted Mr Powell in recent months over the Fed’s decision to not cut interest rates due to inflation concerns.
Donald Trump has been dealt another blwo in court
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Ms Pirro’s office had ostensibly been examining the central bank’s multibillion-dollar headquarters renovation project and Powell’s congressional testimony regarding those works.
In his ruling, Judge Boasberg determined that evidence demonstrated Pirro’s true motivation was compelling the Fed chief to submit to President Donald Trump’s demands for swift and substantial interest rate reductions.
The judge wrote: “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.”
Mr Boasberg was equally damning in his assessment of the prosecution’s case, stating that “the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President”.
US Attorney for Columbia, Jeanine Pirro, said the suspect lived with his wife and ‘we think’ five children in Bellingham, Washington | REUTERS
Jerome Powell accused the White House of trying to use political pressure or intimidation to force down interest rates | REUTERS
Ms Pirro responded with fury at a press conference on Friday, denouncing the judicial decision as “outrageous.” She added: “Jerome Powell is now bathed in immunity.”
The US Attorney insisted the ruling lacked proper legal foundation, declaring: “This is wrong, and it is without legal authority.”
She confirmed the Trump administration would not accept the setback, announcing that “this outrageous decision will be appealed by the Department of Justice”.
Republican Senator Thom Tillis of North Carolina has pledged to maintain his hold on the confirmation of Kevin Warsh, Trump’s chosen successor to Powell as Fed chair, until the criminal investigation reaches a conclusion.
Former Fed governor set to succeed Jerome Powell in May | PA
Writing on the social media platform X on Friday, Senator Tillis said the court’s decision exposed the weakness of the case against Mr Powell.
“This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is, and it is nothing more than a failed attack on Fed independence,” the senator stated.
He urged Ms Pirro’s office to abandon the effort, adding: “We all know how this is going to end, and the DC U.S. Attorney’s Office should save itself further embarrassment.”