Judge Quashes Subpoenas Against Fed Chair

A federal judge on Friday quashed Department of Justice subpoenas issued earlier this year to Federal Reserve Chair Jerome Powell, citing a lack of evidence for criminal activity and suggesting the subpoenas were intended to pressure Powell. U.S. District Court for Washington, D.C. Chief Judge James Boasberg stated there was "no evidence whatsoever" that Powell committed a crime, concluding the subpoenas' dominant purpose was to "harass and pressure Powell either to yield to the President or to resign." The Department of Justice plans to appeal the decision.

The ruling intensifies an ongoing dispute between the executive branch and the independent central bank. Senator Thom Tillis (R-N.C.), a key member of the Senate Banking panel, reiterated his refusal to support Kevin Warsh, the President's potential nominee for Fed Chair, unless the DOJ drops the investigation. Powell's term as Fed chair concludes in May. The subpoenas were reportedly related to the Fed's multibillion-dollar building renovations, an inquiry the Fed previously disclosed in January.