The Federal Reserve has urged a federal judge to reject prosecutors' bid to revive subpoenas in a criminal investigation targeting Chair Jerome Powell.
Legal Opposition
In a court filing unsealed Thursday, the Fed's lawyers told Judge James Boasberg that the U.S. Attorney's Office for the District of Columbia failed to meet the demanding legal standard for reconsideration. They stated that the motion "does not even mention — let alone meet — the demanding legal standard" for such extraordinary relief.
Standards for Reconsideration
The Fed argued that reconsideration is warranted only under specific circumstances:
- A change in relevant law.
- New evidence has emerged.
- The need to correct clear error or prevent manifest injustice. None of these conditions apply, the lawyers asserted, and prosecutors' motion mischaracterizes the court's opinion and the record.
Context of the Probe
The criminal investigation focuses on expensive renovations at the Fed's headquarters and Powell's congressional testimony about them. The Fed claims the probe is a pretext to pressure Powell into cutting interest rates more quickly and sharply, as repeatedly demanded by former President Donald Trump.
Current Status
The case is under review by Judge James Boasberg in the U.S. District Court for the District of Columbia.