Judge Halts DOJ Federal Reserve Probe

A federal judge on March 13, 2026, blocked a criminal probe by the U.S. Department of Justice (DOJ) into the Federal Reserve, ruling it constituted an improper attempt by the Trump administration to pressure the central bank on interest rates. Judge James Boasberg quashed subpoenas issued in January, which ostensibly sought information regarding cost overruns on the Fed's headquarters renovation.

Boasberg's opinion stated that the government provided no evidence of Federal Reserve Chairman Jerome Powell committing any crime beyond displeasing the President. The judge concluded there was substantial evidence that the subpoenas' primary purpose was to harass and pressure Powell to either comply with presidential demands or resign. This ruling underscores the ongoing tension between the executive branch and the Federal Reserve's independence in setting monetary policy.

The DOJ, through U.S. Attorney Jeanine Pirro, announced its intention to appeal the decision, labeling Boasberg an "activist judge." Senator Thom Tillis, a Republican on the Senate Banking Committee, praised the ruling and threatened to block any vote on Trump's nominee to succeed Powell, Kevin Warsh, until the DOJ probe is dismissed. Powell's term as Fed chairman is set to expire in May.