DOJ Subpoenas Targeting Fed Chair Powell Quashed by Judge

A U.S. Federal judge, James Boasberg, has quashed subpoenas issued by the Justice Department against Federal Reserve Chair Jerome Powell, according to court documents unsealed on Friday. The ruling represents a significant setback for President Donald Trump, who has consistently criticized Powell’s leadership and monetary policy.

Background of the Subpoenas

The subpoenas, issued in January, were related to Powell’s testimony before the Senate Banking Committee in June 2025 concerning cost overruns associated with renovations to the Federal Reserve’s offices. The project’s estimated cost has risen to $2.5 billion, an increase of approximately $600 million from a 2022 estimate of $1.9 billion [The Hill].

Judge Boasberg’s Ruling

Judge Boasberg determined that the Justice Department had “produced essentially zero evidence to suspect Chair Powell of a crime” and characterized the justification for the subpoenas as “thin and unsubstantiated.” He asserted that the subpoenas appeared to be a pretext to pressure Powell into lowering interest rates [AP News].

“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 resign and make way for a Fed chair who will,” Boasberg wrote in his ruling [The New York Times].

Powell’s Response and Concerns About Independence

Following the issuance of the subpoenas in January, Powell released a video statement, characterizing the threat of criminal charges as a “pretext” intended to undermine the Federal Reserve’s independence in setting interest rates [The Independent].

The ruling halts U.S. Attorney General Jeanine Pirro from obtaining Federal Reserve records related to the building renovation. Pirro has publicly criticized the decision and indicated plans to appeal [The Independent].

Impact on Senate Confirmation

The legal challenge may further delay Senate consideration of Kevin Warsh, President Trump’s nominee to replace Powell when his term ends on May 15. Powell’s term as chair concludes on May 15, but he is eligible to remain on the Fed’s Board of Governors if a successor is not confirmed.