A U.S. judge has upheld his decision to block subpoenas targeting Federal Reserve Chair Jerome Powell, setting the stage for a likely appeal that could delay President Trump's efforts to replace him.
Judge's Ruling
- Chief U.S. District Judge James Boasberg rejected the Justice Department's request to reconsider his March 13 ruling.
- He found the subpoenas were issued for the improper purpose of pressuring Powell to lower interest rates or resign.
Subpoena Details
- Issued by Jeanine Pirro, Washington D.C.'s top federal prosecutor and a Trump ally.
- Sought information on:
- Cost overruns in renovations at the Fed's headquarters.
- Powell's testimony to Congress about the project.
Appeal and Political Impact
- The Justice Department plans to appeal to the U.S. Court of Appeals for the D.C. Circuit.
- This could delay confirmation of Kevin Warsh, Trump's nominee to succeed Powell.
- Senator Thom Tillis has vowed to block Warsh's nomination during the appeal.
- Powell has pledged not to leave the Fed until the investigation concludes.
Legal Context
- Prosecutors are investigating Powell for potential fraud and false statements to Congress.
- A top lawyer in Pirro's office acknowledged in court that prosecutors lack current evidence of a crime.
- Lawyers for the Fed's Board of Governors argued Boasberg's initial ruling was backed by "overwhelming evidence."