US: Judge quashes subpoenas in DoJ's Federal Reserve case

"A mountain of evidence suggests that the Government served these subpoenas on the Board [of the Federal Reserve] to pressure its Chair [Jerome Powell] into voting for lower interest rates or resigning. The Government has produced essentially zero evidence to suspect Chair Powell of a crime; indeed, the justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual."

"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions or whether instead monetary policy will be directed by political pressure or intimidation. Powell himself went public with this statement after the DoJ informed the independent Fed that it had launched an unprecedented investigation into what it described as cost overruns in the renovation of Fed headquarters."

Federal Judge James Boasberg blocked the Department of Justice's investigation into alleged cost overruns at the Federal Reserve's headquarters renovation, determining the subpoenas were politically motivated. The judge found substantial evidence that the government issued subpoenas to pressure Fed Chair Jerome Powell into voting for lower interest rates or resigning. Powell has maintained the investigation lacks merit and represents political intimidation. President Trump has publicly pressured Powell to lower rates or step down so Trump can appoint a successor. Powell has remained independent, asserting the Federal Reserve must set interest rates based on economic evidence rather than political pressure. The judge concluded the government's justifications were pretextual and unsubstantiated.

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