A federal judge in a scathing ruling blocked subpoenas issued by a grand jury to the Federal Reserve as part of a criminal investigation of Chair Jerome Powell.
U.S. Attorney for the District of Columbia Jeanine Pirro immediately said that the Department of Justice would appeal what she called the “outrageous” ruling, after it was unsealed Friday.
Judge James Boasberg, in his ruling, said evidence showed Pirro was motivated to investigate Powell because of a desire to get the Fed chief to bow to President Donald Trump‘s will and cut interest rates quickly and broadly.
Pirro’s investigation purportedly is focused on the Fed’s multi-billion-dollar renovation of its headquarters in Washington, and on Powell’s testimony to the Senate Banking Committee about that project.
“Did prosecutors issue those subpoenas for a proper purpose? The Court finds that they did not,” Boasberg wrote in the decision in U.S. District Court in D.C., which was dated Wednesday, but unsealed on Friday.
“There is abundant evidence that the subpoenas’ dominant (if not sole) purpose is to harass and pressure Powell either to yield to the President or to resign and make way for a Fed Chair who will,” the judge wrote.
“On the other side of the scale, the Government has offered no evidence whatsoever that Powell committed any crime other than displeasing the President,” Boasberg wrote.
Pirro blasted Boasberg’s ruling at a news conference Friday, calling it “outrageous.”
“Jerome Powell is now bathed in immunity,” she fumed.
“This is wrong, and it is without legal authority,” Pirro said.
“This outrageous decision will be appealed by the Department of Justice,” she said.
Sen. Thom Tillis, R-N.C., has vowed to continue a blockage of Trump’s nominee to replace Powell, Kevin Warsh, as chair until the investigation of Powell is resolved
Tillis, in a statement on the social media site X on Friday, said, “This ruling confirms just how weak and frivolous the criminal investigation of Chairman Powell is and it is nothing more than a failed attack on Fed independence.”
“We all know how this is going to end and the D.C. U.S. Attorney’s Office should save itself further embarrassment,” Tillis wrote.
The Federal Reserve declined to comment when contacted by CNBC.
Federal Reserve Chair Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee at the Federal Reserve on October 29, 2025 in Washington, DC.
Alex Wong | Getty Images News | Getty Images
Boasberg’s ruling and the DOJ’s planned appeal are likely to keep Powell in his seat as Fed chair until after his term expires in May.
Tillis’s promised “no” vote on the Banking Committee advancing Warsh’s nomination would deadlock that panel, preventing Warsh from getting a confirmation vote by the full Senate.
Trump’s desire that the Fed slash interest rates further has been further complicated by the Iran war.
Soaring energy costs are likely to dissuade policymakers from easing until there is more clarity about when and how the war will end.
Recent statements from Fed officials have indicated a mostly cautious approach to further cuts, save from Governors Stephen Miran and Christopher Waller, who have favored lower rates.
Markets already had pushed back any hopes for rate reductions until the end of the year. Before the war, the market had been pricing in at least two cuts.
— CNBC’s Eamon Javers and Jeff Cox contributed to this article
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