Judge Boasberg Rules Trump DOJ Used Subpoenas To Pressure Fed Chair Jerome Powell

Chief U.S. District Judge James Boasberg quashed Justice Department subpoenas served on the Federal Reserve Board and its chair, Jerome Powell, finding that there was overwhelming evidence the subpoenas were used to pressure Powell rather than to investigate legitimate criminal conduct.

“By CHRISTOPHER RUGABER, AP Economics Writer WASHINGTON (AP) — A federal judge on Friday quashed Justice Department subpoenas issued to the Federal Reserve in January, a severe blow to an investigation that has already attracted strong criticism on Capitol Hill”

Akron News-Reporter

Boasberg wrote that a “mountain of evidence” showed the Government served the subpoenas to try to force Powell to lower interest rates or resign, and that the government produced "essentially zero evidence" incriminating Powell, rendering the subpoenas unenforceable.

Akron News-Reporter

The ruling identified the subpoenas as likely “pretextual” and authorized the court to block them because they appeared to serve an improper, political purpose.

The subpoenas were tied to a Justice Department probe of a multibillion-dollar renovation of the Fed’s historic headquarters and Powell’s Senate testimony about the project; prosecutors said they were examining possible false statements and fraud related to the roughly $2.5 billion project.

The Department sought documents and communications about the Marriner S. Eccles and Federal Reserve Board East buildings renovation, which had grown from an initial $1.9 billion estimate to about $2.5 billion, and Pirro said her office is investigating false statements and fraud, leaving final charging decisions to a grand jury.

CBS News

Boasberg’s opinion stressed motive over incriminating evidence, finding that the subpoenas appeared to be a tool of political pressure tied to White House frustrations with Powell’s interest-rate decisions.

“A federal judge has quashed subpoenas the Justice Department had issued against Federal Reserve Chair Jerome Powell, according to court documents unsealed Friday”

CNN

The judge wrote that the subpoenas were connected to attempts to exert unlawful pressure on Powell and other governors, citing President Trump’s repeated public attacks and a pattern where being perceived as the President’s adversary has become risky.

Boasberg offered the government an opportunity to submit evidence under conditions that would not tip off the Fed or Powell, but the government declined, strengthening the court’s skepticism of the probe’s purpose.

The decision drew sharp criticism from U.S. Attorney Jeanine Pirro and Republican lawmakers who argued the ruling curtailed grand jury oversight and politicized the judiciary, while supporters of the judge pointed to a pattern of partisan pressure.

Pirro called Boasberg an “activist judge” and said the ruling “neutered the grand jury’s ability to investigate the Fed,” charging that the judge had effectively "put himself at the entrance door to the grand jury, slamming that door shut."

El Independiente

Senator Thom Tillis urged the U.S. Attorney’s Office to "save itself further embarrassment and move on," warning that an appeal would delay the confirmation of Kevin Warsh.

Boasberg’s order also sits within a broader pattern of clashes between the judge and the Trump administration and has immediate political implications, including possible delays in Fed leadership confirmations.

“By Reuters Andrew Goudsward and Ann Saphir March 13 (Reuters) - A federal judge on Friday blocked subpoenas issued by the Department of Justice in its criminal investigation into Jerome Powell's handling of renovations to historic Federal Reserve buildings in Washington”

Investir

The judge’s prior rulings, including blocking rapid deportation flights under wartime authority, have drawn presidential ire and calls for impeachment, prompting rare rebukes from judicial leaders; meanwhile, Senator Tillis and others tied the outcome to the timing of Kevin Warsh’s nomination and confirmation.

KSAT

Boasberg, an appointee of President Barack Obama, has been repeatedly targeted by the administration but the court stressed legal protections against using prosecutions for political ends.