A US federal judge has blocked subpoenas issued against US Federal Reserve Chair Jerome Powell by the Justice Department, which launched an investigation into him related to renovations of a government building, according to a filing.
"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," wrote Judge James E. Boasberg in a filing dated March 11.
"The Court therefore finds that the subpoenas were issued for an improper purpose and will quash them."
Delivering a win for the central bank and a setback for the criminal investigation into Chair Jerome Powell, Judge Boasberg, in the ruling unsealed on Friday, said the main purpose was to pressure Powell to comply with the US president or step aside in favour of a more compliant Fed chair.
US Attorney Jeanine Pirro, a longtime supporter of President Trump, launched the inquiry to determine whether Powell misled Congress last summer in testimony about the Federal Reserve’s building renovation project.
The investigation prompted an unusual public response from Powell, who said in a January 11 video statement that the probe was a pretext for continued political pressure on the Fed to cut interest rates and undermine the central bank’s independence.
Department of Justice launched a criminal investigation into Powell in late 2025, around November. The probe became public in January 2026.
Powell under scrutiny
The investigation centres on Powell’s June 2025 testimony before the Senate Banking Committee. It focuses on a multi-year renovation project for the Federal Reserve’s historic headquarters buildings in Washington, valued at roughly $2.5 billion.
Prosecutors, working under US Attorney Jeanine Pirro in the District of Columbia, are reviewing whether Powell made false or misleading statements to Congress about the project’s scope, costs, or details.
On January 9 and 10, 2026, the DOJ served grand jury subpoenas on the Federal Reserve, raising the possibility of criminal charges linked to the testimony.
In a rare public video statement on January 11, 2026, Powell called the investigation “unprecedented”. He said the renovation and testimony questions were a pretext, arguing the real pressure stemmed from Trump’s repeated criticism of the Fed for not cutting interest rates more aggressively.
The inquiry has drawn a strong reaction. Critics, including some Republican lawmakers, former Fed officials, and Powell himself, say it risks undermining the central bank’s independence in setting monetary policy.
The Federal Reserve subsequently challenged the subpoenas in court.
