Judge James Boasberg has reaffirmed his March 13 order blocking subpoenas tied to the criminal investigation of Federal Reserve Chair Jerome Powell, finding the subpoenas were improperly aimed at pressuring him over interest-rate policy or resignation. The subpoenas, issued by prosecutor Jeanine Pirro, sought records on renovation cost overruns and Powell’s congressional testimony. Pirro plans to appeal to the D.C. Circuit with Justice Department support, a move that could delay confirmation of Kevin Warsh. Powell says he will remain at the Fed until the inquiry concludes.
Judge Upholds Block on Subpoenas to Fed Chair Powell, Likely Triggering Appeal and Delay to Trump’s Fed Pick
FILE PHOTO: U.S. Federal Reserve Chair Jerome Powell holds a press conference following a two-day meeting of the Federal Open Market Committee, in Washington, D.C., U.S., December 10, 2025. REUTERS/Kevin Lamarque/File Photo
WASHINGTON, April 3 (Reuters) — Chief U.S. District Judge James Boasberg on Friday reaffirmed his March 13 order blocking subpoenas issued in a criminal investigation of Federal Reserve Chair Jerome Powell. The decision increases the likelihood of an appeal and could postpone President Donald Trump’s effort to install a replacement who would be more closely aligned with his policy goals.
Judge's Ruling and Reasoning
In his March 13 opinion, Boasberg concluded that subpoenas directed at the Fed’s Board of Governors in January were issued with the improper purpose of pressuring Powell to either rapidly cut interest rates or resign. The subpoenas, brought by Washington D.C.’s top federal prosecutor Jeanine Pirro, sought documents about cost overruns on renovations to the Federal Reserve’s headquarters and material related to Powell’s congressional testimony about the project.
Next Steps and Legal Fight
Pirro has said she intends to press the investigation and is prepared to appeal Boasberg’s decision to the U.S. Court of Appeals for the D.C. Circuit. Officials at the Justice Department have backed moving forward with an appeal, according to a source familiar with the matter. The appeal is expected to be the next major battleground and could extend the legal fight for months.
Political and Institutional Implications
The appeal could further delay confirmation hearings and a final vote on Kevin Warsh, President Trump’s nominee to succeed Powell as Fed chair. Senator Thom Tillis, a Republican member of the Senate Banking Committee who has criticized the probe, has pledged to continue blocking Warsh’s nomination while any appeal is pending. Powell has stated he will remain at the central bank until the inquiry is concluded.
Investigation Status
Prosecutors have said they are investigating whether Powell committed fraud or made false statements to a congressional committee. However, a senior lawyer in Pirro’s office acknowledged in court on March 3 that, as of that date, prosecutors did not yet know what evidence exists to prove Powell committed a crime, according to a court transcript.
Arguments From Both Sides
Pirro’s office faced a high legal bar to persuade Boasberg to reconsider, needing to show either newly discovered evidence or a clear legal error. Justice Department attorneys argued the judge applied too stringent a standard for prosecutors at the early stages of an investigation and misread aspects of the probe’s timeline. Lawyers representing the Federal Reserve’s Board of Governors countered that Boasberg’s original ruling was supported by "overwhelming evidence."
Reporting by Andrew Goudsward; Editing by Dan Burns and Andrea Ricci.
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