\n<\/p>\n
In a fiery, 27-page decision, a United States judge has granted a motion to quash two subpoenas related to an investigation into Jerome Powell, the chair of the Federal Reserve, the country\u2019s central bank.<\/p>\n
On Friday, Judge James Boasberg of the US court for the District of Columbia concluded that the subpoenas has been issued for an \u201cimproper purpose\u201d: to harass Powell into compliance.<\/p>\n list of 3 items<\/span>end of list<\/span><\/section>\n Powell, Boasberg explained, had been the target of a months-long campaign under President Donald Trump to force the Federal Reserve to lower interest rates rapidly and dramatically.<\/p>\n Trump has repeatedly called for Powell to step down as part of that campaign. Powell\u2019s tenure as head of the Federal Reserve Board is set to expire in May.<\/p>\n \u201cA 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,\u201d Boasberg wrote, in a decision that cites numerous public statements from the president.<\/p>\n Boasberg added that the government\u2019s justifications for the subpoenas seem hollow.<\/p>\n \u201cThe Government has produced essentially zero evidence to suspect Chair Powell of a crime,\u201d he wrote.<\/p>\n \u201cIndeed, its justifications are so thin and unsubstantiated that the Court can only conclude that they are pretextual.\u201d<\/p>\n As part of his decision, Boasberg ordered the unsealing of the two subpoenas, though they do remain redacted in part.<\/p>\n His ruling was quickly rebutted by the US attorney overseeing the case, Trump appointee Jeanine Pirro, who held a combative but brief news conference on Friday morning.<\/p>\n She accused Boasberg of \u201cinserting himself\u201d into a grand jury proceeding and offering Powell immunity from prosecution. She also brushed aside Boasberg\u2019s decision as being \u201cwithout legal authority\u201d, adding that it would be appealed swiftly.<\/p>\n \u201cOne of the age-old tools that all prosecutors have to investigate any crime, including cost overruns, is a grand jury subpoena,\u201d Pirro said.<\/p>\n \u201cToday, however, in Washington, an activist judge has taken that tool away from us.\u201d<\/p>\n When faced with reporter questions, Pirro denied that the subpoena had been sought for political aims.<\/p>\n \u201c\u200aWe are focused on the law. We\u2019re focused on the people of the district. We are not focused on politics,\u201d she said.<\/p>\n But Boasberg\u2019s decision suggests otherwise, claiming that the Trump administration has led a campaign to investigate and prosecute political rivals.<\/p>\n Boasberg pointed to examples including posts from Trump calling on Attorney General Pam Bondi to file criminal charges against three of his critics: New York Attorney General Letitia James, US Senator Adam Schiff and former FBI director James Comey.<\/p>\n James and Comey subsequently faced indictments, while Schiff was placed under investigation.<\/p>\n Trump has also taken aim at another member of the Federal Reserve Board, Democratic nominee Lisa Cook, accusing her of alleged mortgage fraud. Her case is currently before the Supreme Court.<\/p>\n \u201cBeing perceived as the President\u2019s adversary has become risky in recent years,\u201d Boasberg wrote. \u201cIn his second term, Trump has urged the Department of Justice to prosecute such people, and the Department\u2019s prosecutors have listened.\u201d<\/p>\n As the body in charge of monetary policy in the US, the Federal Reserve is considered independent from the US political system, to avoid its decisions being wielded for political aims.<\/p>\n But the Trump administration has embarked on a historic effort to bring different parts of government \u2014 even those deemed independent \u2014 under executive control.<\/p>\n Powell was nominated to head the Federal Reserve\u2019s seven-member board during Trump\u2019s first term as president, in 2017.<\/p>\n But since Trump\u2019s return to the presidency in January 2025, he has pushed Powell to slash interest rates.<\/p>\n Doing so would make loans cheaper and would thereby flush the economy with money, as well as accelerate businesses that require large-money loans for projects and expansion.<\/p>\n Chopping the interest rates fast comes with a downside, though. Economists warn that, while the stock market might see a temporary bump, flooding the economy with money could undermine the value of the dollar, leading to a long-term weakening of the economy.<\/p>\n Interest rates were lifted in the wake of the COVID-19 pandemic to tackle inflation, and they have been steadily decreasing in the years since.<\/p>\n But Trump argued that the Federal Reserve Board has been too slow to lower interest rates, giving its chair the nickname \u201cToo Late Powell\u201d.<\/p>\n The president has also suggested he might remove Powell forcibly, though he has not publicly indicated how. \u201cIf I want him out, he\u2019ll be out of there real fast, believe me,\u201d Trump said in the Oval Office last year.<\/p>\nRecommended Stories <\/h2>\n