Judge James Boasberg stated that “a wealth of evidence indicates” the legal subpoena was intended to exert pressure on the Federal Reserve to reduce interest rates
According to court documents made public on Friday, US federal judge James Boasberg has nullified subpoenas issued by the Justice Department against Federal Reserve Chair Jerome Powell.
The ruling deals a significant setback to US President Donald Trump, who has repeatedly criticized Powell for not decreasing interest rates.
The subpoenas issued in January pertain to Powell’s testimony before the Senate Banking Committee in June 2025 regarding cost overruns associated with the Fed’s building renovations. As per the Fed, the project’s most recent estimate of $2.5 billion is approximately $600 million more than the 2022 figure of $1.9 billion.
The ruling has also halted the Senate’s consideration of Kevin Warsh, whom Trump has nominated to succeed Powell when his term expires on May 15.
Judge James Boasberg stated that the government had “virtually produced no evidence to suspect Chair Powell of a crime” and characterized its justification for the subpoenas as so “flimsy and unfounded” that they seemed to be a ruse to compel Powell to lower interest rates.
“There is ample evidence that the primary, if not the only, purpose of the subpoenas is to harass and pressure Powell into either yielding to the president or stepping down to make room for a Fed chair who will,” he stated.
Following the receipt of the subpoenas in January, Powell released a video statement describing the threat of criminal charges as a “pretext” to undermine the Fed’s independence in determining interest rates.
Boasberg’s ruling on Friday prohibits US Attorney General Jeanine Pirro, who issued the subpoenas, from accessing Fed records related to the building renovation. She has criticized the decision and indicated her intention to appeal.
Pirro’s intention to appeal could further delay the Senate’s consideration of Warsh’s nomination, which already faces uncertainty regarding confirmation. Powell’s term as chair concludes on May 15, but he can stay on the Fed’s Board of Governors if no successor is confirmed.