Judge blocks Justice Department subpoenas against Powell
A judge blocked DOJ subpoenas against Fed Chair Jerome Powell on Friday. The court ruled the probe lacked evidence and aimed to pressure Powell to cut rates.
A federal judge in the United States has issued a ruling to block subpoenas served by the Justice Department to Federal Reserve Chair Jerome Powell. The subpoenas were part of an investigation into the management of the central bank's renovation projects, a probe that Powell has previously described as a direct threat to the independence of the Federal Reserve.
The court found that the investigation appeared to be a pretextual effort by the administration to exert pressure on the central bank to lower interest rates. Chief Judge James Boasberg noted that the government failed to provide any credible evidence of wrongdoing by Powell.
\"The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual.\"
Powell had initially disclosed the existence of the probe on January 11, asserting that the move was part of a broader effort to influence monetary policy. The judge agreed with this assessment, stating that the mountain of evidence suggested the true intent of the investigation was to force the chair to lower rates or resign his post.
