A federal judge has blocked a Justice Department attempt to subpoena Federal Reserve Chair Jerome Powell, ruling that prosecutors failed to provide any evidence of criminal wrongdoing. U.S. District Judge James Boasberg characterized the investigation into a $2.5 billion headquarters renovation as a politically motivated effort to pressure the central bank’s leadership.
The ruling, issued March 11, followed a candid admission from the U.S. Attorney’s Office for the District of Columbia. According to a sealed transcript of a March 3 hearing, Assistant U.S. Attorney Andrew Massucco acknowledged that the government lacked specific proof of fraud or false statements by the Fed Chair.
“We Don’t Know”: The DOJ’s Admission
The investigation focused on Powell’s testimony regarding the $2.5 billion renovation of the Federal Reserve’s headquarters. While the project’s cost rose from a 2022 estimate of $1.9 billion, prosecutors struggled to articulate a criminal basis for their probe.
When Judge Boasberg asked what false statements Powell had allegedly made to Congress, Massucco responded, “Well, we don’t know is my first answer.” When pressed for evidence of fraud, Massucco cited the price tag of the project rather than specific misconduct, stating there were “1.2 billion reasons for us to look into it.”
A “Mountain of Evidence” of Political Motive
In a scathing written opinion, Judge Boasberg dismissed the subpoenas, suggesting the Justice Department—led by U.S. Attorney Jeanine Pirro—was acting as a political tool for the White House. President Donald Trump has frequently attacked Powell, publicly suggesting criminality in the renovation project while simultaneously demanding the Federal Reserve lower interest rates.
“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” Boasberg wrote, noting that prosecutors presented “zero evidence” of actual wrongdoing.
Fed attorney Robert Hur argued the investigation was born of “political motives” rather than legal necessity. Defense counsel noted that the cost overruns in the headquarters project were consistent with other large-scale government-led renovations.
Political Fallout and Stalled Confirmations
The dismissal marks a significant legal setback for the Trump administration’s efforts to exert influence over the historically independent Federal Reserve. However, the conflict is far from over. U.S. Attorney Pirro has pledged to appeal Boasberg’s decision, maintaining that “possible discrepancies” in the project’s costs warrant further scrutiny.
The ongoing legal battle has reached the Capitol, where the probe has effectively stalled the Senate confirmation of Kevin Warsh, whom President Trump has tapped to replace Powell.
