US Judge Upholds Block on Subpoenas to Fed’s Powell, Halting Criminal Probe Linked to Trump Pressure, Opening Door for Appeal

A US judge upheld his earlier decision to block subpoenas issued in a criminal investigation involving Federal Reserve Chair Jerome Powell, paving the way for a probable appeal that could stall President Donald Trump's plans to replace Powell with a more compliant central bank head.

Chief US District Judge James Boasberg in Washington, D.C., rejected the Justice Department’s request to reconsider his March ruling, which had halted the criminal probe into Powell. Boasberg found that the subpoenas, issued by D.C. federal prosecutor Jeanine Pirro, were aimed at pressuring Powell to either lower interest rates swiftly or resign.

The subpoenas sought details on cost overruns in Fed headquarters renovations and Powell’s congressional testimony about the project. Boasberg said Pirro’s office had “not come close to convincing the Court that a different outcome is warranted,” noting a “total lack of a good-faith basis to suspect a crime” and no evidence of fraud.

Pirro’s office announced it will appeal the ruling, which could further delay confirmation of Trump’s nominee, Kevin Warsh, as Fed chair. Powell has pledged to remain in office until the investigation concludes.

Senator Thom Tillis, a Republican on the Senate Banking Committee, has warned he will continue to block Warsh’s nomination while the appeal is pending. Prosecutors claim to be investigating potential fraud and false statements by Powell, though no clear evidence of wrongdoing has emerged.

Boasberg’s ruling marks another win for Powell in his legal battle against what he has described as a politically motivated probe aimed at undermining Fed independence.