DOJ Subpoenas of Federal Reserve Blocked by Judge, Pirro Vows Appeal

A U.S. Judge has blocked the Department of Justice’s (DOJ) efforts to investigate the Federal Reserve, marking a victory for Fed Chairman Jerome Powell. The decision stems from subpoenas issued by U.S. Attorney Jeanine Pirro seeking information related to renovations at the Fed’s offices and Powell’s testimony before Congress. Pirro has stated her intention to appeal the ruling.

Judge Cites Lack of Evidence

U.S. District Judge James Boasberg ruled that prosecutor Jeanine Pirro presented “no evidence” to justify the demands for information from the Federal Reserve . The judge found that the subpoenas appeared to be aimed at harassing Powell or pressuring him to resign .

Pirro’s Response and Potential Political Implications

Pirro strongly criticized the decision, calling it “outrageous” and claiming it grants Jerome Powell “immunity” from investigation . She dismissed questions about whether the legal battle would impact plans to replace Powell as chairman when his term ends in May, labeling such concerns as “white noise” .

The case has raised concerns about potential political pressure on the central bank and has added complexity to White House considerations regarding a modern Fed chair .

Background on the Subpoenas

Pirro issued the subpoenas in January following her office’s inquiries regarding the renovation of the Federal Reserve’s D.C. Headquarters and Powell’s related congressional testimony were ignored . The subpoenas sought information about cost overruns related to the renovations.

Appeal Expected

Pirro has indicated she will appeal Judge Boasberg’s ruling, arguing it was “wrong on its face” and “neutered” her ability to investigate potential crimes . An appeal could potentially complicate efforts to replace Powell with former Fed Governor Kevin Warsh, who was previously nominated by President Trump .