Federal judge tosses subpoenas against Fed chair Jerome Powell – Axios

Subpoenas against Fed chair Powell tossed in a scathing opinion

• By Courtenay Brown

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A federal judge tossed out Department of Justice subpoenas sent to Federal Reserve chair Jerome Powell earlier this year, according to a filing unsealed on Friday.

Why it matters: The judge accused the Trump administration of using the criminal investigation to pressure the head of the world’s most important central bank to lower interest rates.

• The judge, James Boasberg, the chief judge for the U.S. District Court for Washington, D.C., also scolded the administration for providing “no evidence whatsoever” that the Fed chief had committed a crime.

What they’re saying: “There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” Judge Boasberg wrote in his opinion.

• “On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” Boasberg added.

What to watch: The Department of Justice said it planned to appeal the decision, extending the unprecedented battle between the government and the Fed — and potentially prolonging the confirmation of Trump’s next pick to lead the central bank, Kevin Warsh.

• “No one, folks, is above the law, and this outrageous decision will be appealed by the United States Department of Justice,” Jeanine Pirro, the U.S. attorney for the District of Columbia, said during a news conference on Friday.
• A Federal Reserve spokesperson declined to comment.

The intrigue: Sen. Thom Tillis (R-N.C.), an important lawmaker on the Senate Banking panel, doubled down Friday on his refusal to support Warsh unless the DOJ drops the Powell investigation. Powell’s term as Fed chair ends in May.

• “We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment and move on,” Tillis said in a statement posted on X.
• “Appealing the ruling will only delay the confirmation of Kevin Warsh as the next Fed Chair,” he added.

Between the lines: Any Fed official needs to be confirmed by the Senate Banking Committee, where Republicans have just a two-seat majority. Tillis has the power to derail the nomination, assuming all Democrats vote “no.”

Flashback: The Fed disclosed in January that it had received grand jury subpoenas over the central bank’s multibillion-dollar building renovations.

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