Judge Throws Out DOJ Subpoenas in Probe Targeting Fed Chair Jerome Powell
Adrian Schimpf • March 13th, 2026
Federal Reserve Chair Powell
Judge Dismisses DOJ Subpoenas in Probe Targeting Federal Reserve Chair Powell
A federal judge has dismissed two subpoenas issued by the U.S. Department of Justice in its criminal investigation into Federal Reserve Chair Jerome Powell, delivering a significant legal victory for the central bank and raising new questions about political pressure on monetary policy.
The ruling effectively halts a controversial investigation launched earlier this year that examined whether Powell misled Congress about cost overruns tied to renovations at the Federal Reserve’s headquarters in Washington.
Court Finds Little Evidence of Criminal Conduct
U.S. District Judge James Boasberg ruled that the subpoenas lacked sufficient legal justification and suggested the investigation may have been politically motivated.
In his decision, Boasberg wrote that the government failed to present meaningful evidence suggesting Powell committed a crime.
“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower rates or resigning,” the judge wrote in his order.
The court also warned that the probe risked undermining the Federal Reserve’s long standing independence from political influence.
Tensions Between the White House and the Fed
The investigation emerged amid growing tensions between the Trump administration and the Federal Reserve over interest rate policy.
President Donald Trump has repeatedly criticized the Fed for keeping interest rates elevated and has publicly called for lower borrowing costs to support economic growth.
Powell, in response to the investigation, previously argued that the probe was linked to political disagreements over monetary policy rather than legitimate legal concerns.
Justice Department Plans Appeal
Despite the ruling, the Justice Department signaled that the legal battle is far from over.
D.C. District Attorney Jeanine Pirro, who oversaw the investigation, criticized the court’s decision and announced plans to appeal.
Pirro argued the ruling improperly restricted the Justice Department’s ability to investigate potential wrongdoing at the Federal Reserve.
“This decision will be appealed,” she said, describing the judge’s ruling as an overreach.
Leadership Uncertainty at the Federal Reserve
The dispute comes at a sensitive moment for the Federal Reserve’s leadership.
Powell’s term as chair is scheduled to end in May, and former Fed governor Kevin Warsh, President Trump’s nominee to succeed him, is awaiting confirmation in the Senate.
Warsh’s confirmation process has been complicated by the ongoing investigation and the broader political debate surrounding the Fed.
Some lawmakers have indicated they will delay confirmation proceedings until the legal dispute is fully resolved.
Debate Over Federal Reserve Independence
The case has reignited long standing debates about the independence of the Federal Reserve.
Economists and policymakers have historically viewed the Fed’s ability to set interest rates without direct political pressure as critical to maintaining stable monetary policy and investor confidence.
The judge’s ruling emphasized concerns that legal actions targeting the Fed could undermine that independence.
Overall
The dismissal of the subpoenas represents a major legal setback for the Justice Department’s investigation into Jerome Powell and underscores the political tensions surrounding U.S. monetary policy.
With Powell’s leadership term nearing its end and an appeal likely on the horizon, the case could continue to shape debates about the Federal Reserve’s independence and the relationship between political leaders and central banks.
Data & Methodology:
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