A federal judge in the United States has halted subpoenas issued in a criminal investigation involving Federal Reserve Chair Jerome Powell, ruling that prosecutors failed to present any evidence suggesting wrongdoing.
The order blocks attempts by investigators to obtain documents and testimony linked to renovation costs at the Federal Reserve’s headquarters in Washington. Prosecutors had sought details about the project and Powell’s statements during a congressional hearing.
Chief U.S. District Judge James Boasberg concluded that the subpoenas were issued for an improper purpose and therefore could not stand. In a strongly worded decision, the judge said the government had offered “no evidence whatsoever” that Powell had committed a crime, adding that the investigation appeared driven more by political displeasure than legal grounds.
The inquiry was initiated by the office of Jeanine Pirro, the U.S. Attorney for Washington, D.C. Her office argued that authorities needed to examine whether Powell had misled Congress or committed fraud in relation to the renovation project. Following the court’s ruling, Pirro announced that the Justice Department would challenge the decision on appeal.
Powell had earlier disclosed the investigation and described it as a threat to the independence of the central bank. The Federal Reserve leadership had asked the court to cancel the subpoenas, maintaining that the inquiry was an attempt to pressure the institution over monetary policy decisions.
The dispute unfolds against a tense backdrop between the White House and the central bank. President Donald Trump has repeatedly criticized Powell and pushed for faster interest rate cuts, while the Federal Reserve has taken a more cautious stance due to lingering inflation concerns.
In his ruling, Judge Boasberg said a substantial body of evidence suggested the investigation was intended to push Powell toward lowering interest rates or stepping aside from his post.
The court’s intervention temporarily stalls the investigation and adds uncertainty to the leadership transition expected at the Federal Reserve later this year. Trump has indicated support for former central bank governor Kevin Warsh as a potential successor when Powell’s term ends in mid-May, but the ongoing legal battle has complicated the process.
Meanwhile, the dispute has also stirred tensions in the U.S. Senate. Senator Thom Tillis warned that confirmation of any new Federal Reserve chair could face delays as long as the investigation remains unresolved.
The ruling represents the latest legal setback for the administration in cases involving critics of the president. In recent months, courts have also dismissed indictments against former FBI director James Comey and New York Attorney General Letitia James, both of whom previously led investigations involving Trump.
In his decision, Boasberg remarked that political rivalry cannot substitute for evidence in criminal investigations, emphasizing that mere conflict with the president cannot justify launching a probe.
