Judge Blocks DOJ Probe of Federal Reserve Chair Powell, Appeal Expected
A federal judge has halted the Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell, deeming it a politically motivated attempt to pressure the central bank. The DOJ is expected to appeal the decision.
Background of the Investigation
In November 2025, federal prosecutors in Washington, D.C., initiated a criminal investigation into Jerome Powell concerning the renovation of the Federal Reserve’s headquarters. The investigation, approved by U.S. Attorney Jeanine Pirro, focused on whether Powell made false or misleading statements to Congress regarding the project’s scope and cost [1].
Judge’s Ruling
On March 13, 2026, Judge James Boasberg quashed subpoenas issued to the Fed in January, stating the investigation was an improper campaign by the Trump administration to influence the Federal Reserve’s monetary policy [2]. The judge found no evidence suggesting Powell committed a crime other than potentially displeasing the President [2].
Powell’s Response
Jerome Powell has consistently described the Justice Department’s probe as an attack on the central bank’s independence [2]. He previously rebuked the investigation, calling it politically motivated, after months of criticism from President Trump regarding interest rate policy [4].
Political Reactions
Senator Thom Tillis (R-N.C.) praised the judge’s decision, calling the investigation “weak and frivolous” and an attack on the Fed’s independence [2].
Focus of the Investigation
The investigation initially centered on Powell’s testimony to Congress in June regarding cost overruns in a multi-billion-dollar office renovation project [4]. Specifically, questions arose regarding statements Powell made about amenities included in the renovation plans, such as a rooftop terrace and private dining rooms [4].
Next Steps
The Justice Department intends to appeal Judge Boasberg’s decision, continuing the legal battle over the investigation’s validity [3]. This case remains a significant test of the Federal Reserve’s ability to operate independently from political interference.