Federal Judge Dismisses Grand Jury Subpoenas Targeting Fed Chair Jerome Powell, Citing Political Pressure Motive

A federal judge has dismissed grand jury subpoenas issued to the Federal Reserve Board as part of a criminal investigation into Federal Reserve Chair Jerome Powell, ruling that the subpoenas were intended to pressure Powell rather than to investigate legitimate criminal conduct. Chief Judge James Boasberg of the U.S. District Court for the District of Columbia wrote in his March 11 ruling, unsealed on Friday, that the subpoenas were a pretext aimed at forcing Powell to lower interest rates or resign. The judge noted that the government had presented no evidence suggesting Powell committed any crime beyond displeasing then-President Donald Trump.

The investigation, led by U.S. Attorney Jeanine Pirro’s office, focused on Powell’s June 2025 testimony before the Senate Banking Committee regarding a costly renovation project at the Federal Reserve’s headquarters. The probe also examined whether Powell made false statements related to the project, which has been criticized by Trump administration officials and congressional Republicans for its expense and alleged ostentation. Powell has maintained that the investigation is politically motivated, emphasizing in a January video statement that the threat of criminal charges stemmed from the Federal Reserve’s independent setting of interest rates rather than following presidential preferences.

Judge Boasberg’s ruling highlighted numerous public attacks by President Trump and his administration on Powell, including calls for his removal after Powell resisted pressure to rapidly cut interest rates amid economic concerns. The judge cited over 100 statements from the president or his deputies criticizing Powell, concluding that the subpoenas were issued to harass and coerce the Fed chair. “The Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts,” Boasberg wrote. The ruling effectively blocks the subpoenas and prevents the grand jury from pursuing the investigation under the current circumstances.

In response, Pirro criticized the decision, calling the judge an “activist” and arguing that the ruling undermined the grand jury’s ability to investigate potential crimes. She stated that the subpoenas were legally valid and accused Powell of evading cooperation by rallying political support. Pirro also announced that the Justice Department plans to appeal the ruling but did not provide a timeline. Meanwhile, Senator Thom Tillis (R-NC), a member of the Senate Banking Committee, welcomed the judge’s decision, describing the investigation as “weak and frivolous” and warning that an appeal would delay the confirmation of Trump’s nominee to succeed Powell, Kevin Warsh. Powell’s term as Fed chair is set to expire in May, and the Federal Reserve’s Open Market Committee is scheduled to meet soon to decide on interest rate policy.