DOJ Vows to Fight Back: Appeal Filed Against Block of Fed Subpoenas in High-Stakes Jerome Powell Probe!

A federal judge has delivered a strong rebuke to a grand jury’s subpoenas aimed at the Federal Reserve, characterizing them as a misguided effort to pressure Chair Jerome Powell into reducing interest rates at the behest of former President Donald Trump. In a ruling unsealed on Friday, U.S. District Judge James Boasberg determined that these subpoenas were primarily motivated by the desire to manipulate the Fed’s decision-making process, rather than to serve legitimate investigative purposes.

U.S. Attorney for the District of Columbia Jeanine Pirro expressed her intention to appeal what she described as an “outrageous” ruling. This development is poised to extend Powell’s tenure as chair, given that Senator Thom Tillis (R-N.C.) has vowed to block Kevin Warsh’s nomination to take Powell’s position until the federal investigation is resolved. Consequently, this situation could keep interest rates elevated longer than Trump desires, as Powell has resisted the former president’s calls for further cuts.

Judge Boasberg’s ruling indicated that the evidence supported the conclusion that Pirro’s investigation was primarily aimed at coercing Powell into succumbing to Trump’s wishes regarding rate reductions. The investigation reportedly centers around the Fed’s multi-billion-dollar renovation of its Washington headquarters and Powell’s prior testimony about the project before the Senate Banking Committee.

Boasberg stated, “Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” further asserting that “a mountain of evidence suggests” the government was attempting to pressure the Fed’s board. He critiqued the government’s lack of substantial evidence against Powell, labeling its justifications as “thin and unsubstantiated.” He concluded that the subpoenas were improperly issued and subsequently quashed them.

In response, Pirro criticized Boasberg’s decision at a press conference, describing it as providing Powell with “immunity.” Tillis also weighed in, branding the ruling as indicative of the weak and frivolous nature of the criminal investigation against Powell. He emphasized that it was a failed attempt to undermine the Fed’s independence, predicting the expected outcome of the appeal.

The implications of Boasberg’s ruling and the anticipated appeal suggest Powell is likely to remain in his role until at least May, when his current term expires. Tillis’s commitment to vote against advancing Warsh’s nomination could stall the confirmation process in the full Senate, effectively keeping Powell in place during this politically charged period.

Trump’s pressures for lower interest rates could face additional complications due to ongoing geopolitical tensions, particularly the war in Iran, which has led to rising energy costs. Federal Reserve officials appear inclined toward a cautious approach in considering further interest rate cuts, with notable exceptions being Governors Stephen Miran and Christopher Waller, who favor reductions. The market has already adjusted expectations for rate cuts, now anticipating they won’t occur until later this year, having once projected multiple reductions earlier.

The Federal Reserve declined to comment on the recent developments. As the landscape evolves, the intersection of politics and monetary policy continues to capture significant attention.

Original Source: https://www.cnbc.com/2026/03/13/fed-jerome-powell-investigation-trump-pirro-doj.html
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Publish Date: 2026-03-15 09:42:00