A United States federal judge has blocked a Justice Department effort to investigate Federal Reserve Chair Jerome Powell, ruling that prosecutors failed to provide evidence to justify the probe.
Chief US District Judge James Boasberg dismissed subpoenas issued to the Federal Reserve as part of a criminal investigation launched by federal prosecutors earlier this year. The inquiry had focused on renovation cost overruns at the Federal Reserve’s headquarters in Washington and Powell’s testimony before Congress about the project.
In his ruling, Boasberg stated that the government presented “essentially zero evidence” that Powell committed a crime. He concluded that the subpoenas appeared to have been issued for an improper purpose, possibly to pressure Powell to change interest rate policies or step down from his position.
The investigation had been led by Washington’s top federal prosecutor, Jeanine Pirro, who was appointed in 2025. Her office sought documents related to the Federal Reserve’s office renovation project, which has reportedly cost about $2.5 billion and drawn scrutiny from some lawmakers.
Powell had previously warned that the legal action could threaten the independence of the Federal Reserve, the central bank responsible for setting US monetary policy and controlling inflation. Analysts say political pressure on the Fed could undermine global financial stability if the institution’s decisions are influenced by government demands.
Following the ruling, Pirro strongly criticized the judge’s decision and announced plans to appeal. She argued that the court had improperly limited prosecutors’ ability to investigate potential wrongdoing.
The legal battle also comes at a sensitive time for US economic leadership. Powell’s term as Federal Reserve chair is expected to end in May 2026, and the White House has nominated former Fed governor Kevin Warsh as his potential successor. However, the ongoing legal and political dispute has complicated the confirmation process in the Senate.
The ruling represents a significant moment in the ongoing tensions between the White House and the Federal Reserve, highlighting concerns about political influence over the country’s central banking system.
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A US federal judge dismissed subpoenas targeting Federal Reserve chair Jerome Powell, saying prosecu
