Judge blocks Justice Department probe into Fed chair Powell

Ruling calls subpoenas 'thin and unsubstantiated', says investigation is to 'harass and pressure' Powell

Mar. 14, 2026 at 1:18am

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A federal judge has quashed Justice Department subpoenas issued to the Federal Reserve in January as part of an investigation into testimony last June by Chair Jerome Powell about a $2.5 billion building renovation. The judge said the government has 'produced essentially zero evidence to suspect Chair Powell of a crime' and called the justifications for the subpoenas 'thin and unsubstantiated', saying the investigation's 'dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign'.

Why it matters

The ruling is a major setback for the Justice Department's investigation into Powell, which has already delayed Senate consideration of President Trump's pick to replace Powell as Fed chair. The decision raises questions about the motives behind the probe and whether it was politically motivated to pressure Powell, who has resisted calls from Trump to cut interest rates.

The details

The Justice Department, led by U.S. Attorney Jeanine Pirro, had issued subpoenas to the Federal Reserve seeking records related to the $2.5 billion renovation of the Fed's headquarters. However, Judge James Boasberg ruled that the government had provided 'essentially zero evidence' of any wrongdoing by Powell and said the subpoenas appeared to be a 'pretext to force Powell to cut rates, as Trump has repeatedly demanded'.

  • On January 11, Powell revealed the Justice Department investigation in an unprecedented video.
  • On March 13, 2026, the federal judge quashed the subpoenas issued to the Federal Reserve.

The players

Jerome Powell

The current chair of the Federal Reserve, who has faced a Justice Department investigation into his testimony about a $2.5 billion building renovation.

Jeanine Pirro

The U.S. Attorney who issued the subpoenas to the Federal Reserve as part of the investigation into Powell.

James Boasberg

The federal judge who quashed the subpoenas, ruling that the government had provided 'essentially zero evidence' of any wrongdoing by Powell.

Thom Tillis

A Republican senator and member of the Banking committee who has blocked consideration of President Trump's pick to replace Powell as Fed chair until the investigation is dropped.

Kevin Warsh

President Trump's pick to replace Powell as the next chair of the Federal Reserve.

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What they’re saying

“This is wrong and it is without legal authority.”

— Jeanine Pirro, U.S. Attorney (News conference)

“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.”

— Thom Tillis, U.S. Senator (Statement)

What’s next

The Justice Department has indicated it will appeal the judge's ruling quashing the subpoenas. The confirmation process for President Trump's nominee to replace Powell as Fed chair, Kevin Warsh, remains on hold until the investigation is resolved.

The takeaway

This ruling deals a major blow to the Justice Department's investigation into Fed Chair Jerome Powell, which has been widely criticized as a politically motivated attempt to pressure Powell. The judge's scathing assessment that the government provided 'essentially zero evidence' of wrongdoing raises serious questions about the legitimacy of the probe and whether it was an abuse of power to undermine an independent Federal Reserve.